Skip to main content
Menu
10 year fixed rate mortgages

Getting a mortgage when you’re older

Once you’re over 50 your mortgage options begin to change, so it’s worth carefully considering your options.

Read the guide to learn all about mortgages when you’re older, or if you’re after advice about a specific age choose from one of these three categories:

  • Mortgages over 50 – Typically this is the age when people enjoy the most flexibility with mortgages
  • Mortgages over 60 – You will only be able to apply for shorter mortgage terms and may need to demonstrate pension and investment income
  • Mortgages over 70 – It will be difficult, but not impossible, to get a mortgage. However if you are a homeowner it may be possible to get a secured loan.

Most mortgage lenders have an upper age limit for their lending, typically one for taking out new mortgages (normally 65 to 70) and another for paying them off (between 70 and 85).

These age limits mean that from your 50th birthday onwards your mortgage options may change.

Compare remortgaging mortgages

Compare mortgages for home owners thinking about getting a new mortgage

Remortgaging mortgages

Mortgages for over 50s

In your 50s you are likely to have plenty of choice over how to plan your mortgage and should still be able to apply for the standard 25 year mortgage term.

This is the age where people typically see their income peak, as well being established homeowners with respectable deposits. This means over 50s are more likely to breeze through eligibility criteria and secure their pick of the best mortgage rates than other age groups.

However, on the downside, this is the last time you’re going to enjoy this much flexibility over your mortgage, so carefully consider your options. Here are the key decisions:

Should you extend your mortgage term?

If you only have around ten years left on your mortgage term it can be tempting to extend your term when remortgaging.

While this should reduce your monthly repayments, it will always cost you more in the long term, potentially adding many thousands to the cost of your mortgage.

If you are going to extend your mortgage term to get lower repayments, you should think about how you would spend the income you would free up and whether you could invest it.

Compare remortgaging mortgages

Compare mortgages for home owners thinking about getting a new mortgage

Remortgaging mortgages

Make overpayments, offset your mortgage or just put your money in savings?

If your mortgage agreement allows it and you are in a position to do it, it is always a good idea to make overpayments. The more you overpay, the quicker you reduce your debt and the less you will pay overall.

The problem with overpaying is once you have paid your money towards your mortgage you cannot get it back, unlike putting your spare income into savings or other investments.

This is where an offset mortgage can be useful. With an offset mortgage you can pay into a savings account that is linked to your mortgage.

The money in this account is then counted as a temporary overpayment towards your mortgage and is ‘offset’ against your mortgage balance, reducing the amount of interest you pay.

However the rates offered by offset mortgage will be slightly higher and you won’t earn interest on your savings. That could be attractive when savings rates are low, but that could change.

Borrowing against equity?

Equity is the share you own of the value of your home. If by your 50s your home has increased in value and you would like to access some of that value as cash, you could consider getting a larger mortgage when remortgaging to borrow against your equity.

However, doing this is this is not without its risks. To find out more, read our guide on equity and how to use it for borrowing.

Mortgages for over 60s

It can get harder to successfully apply for mortgages once you’re in your 60s.

In general, you still enjoy the flexibility of your 50s, however you will likely only be able to apply for shorter mortgage terms of 10-15 years. So, if you’re planning to remortgage to borrow a larger amount you need to show you can afford to pay off your mortgage in a shorter time.

Also if you are planning to retire at the traditional age of 65-70 you will need to show that the income from your pension, annuities or other investments can adequately meet mortgage repayments.

All of our mortgage products are available to those aged 60 and above (although some are capped at 65). Here’s how to compare them:

  1. Go to the uSwitch Mortgages page
  2. Enter the property value, how much you wish to borrow and the repayment term
  3. If you wish, filter further by rate type, initial period, or payment type
  4. For each mortgage product you are interested in hover over the ‘Can I get this mortgage’ button. It looks like this:     Can I get this mortgage
  5.  Just look for age restriction on the mortgages. Commonly they will say ’65 or younger at mortgage end’, as in the above example.

Mortgages for over 70s

Getting a mortgage in your 70s can be very difficult, if not impossible. Some lenders are more flexible and offer a more personalised service than others though, so it’s worth asking about policies and if they’ll take your personal circumstances into consideration.

Local credit unions and building societies are traditionally some of the most understanding lenders, so it could be worth finding your local one and seeking their advice.

It may also be possible to apply for a guarantor mortgage, if you can provide a guarantor who would be willing to meet the repayments should you be unable to.

Finding a over 70s mortgage

Our comparison tables contain a number of providers that provide mortgages for over-70s. We explain how to find them:

  1. Go to the uSwitch Mortgages page
  2. Enter the property value, how much you wish to borrow and the repayment term
  3. If you wish, filter further by rate type, initial period, or payment type
  4. For each mortgage product you are interested in hover over the ‘Can I get this mortgage’ button. It looks like this: Screen Shot 2015-09-01 at 16.35.44
  5.  Just look for mortgages with a high age restriction, like the example above, or those that don’t have an age restriction.

Alternatively you can search by provider. All of the following providers have mortgages suitable for those over 70. However, not all their mortgage products may be available: 

AccordAhli United BankAldermore MortgagesBank Of IrelandBath BSBeverley BSBM SolutionsCambridge BSChorley BSClydesdale BankCoventry BSDarlington BSEcology BSFamily BSFurness BSGodiva MortgagesHalifaxHarpenden BSHinckley & Rugby BSKensington MortgagesKent RelianceLeeds BSLeek United BSLloyds BankManchester BSMansfield BSMarsden BSMBS LendingMelton Mowbray BSMetro BankMonmouthshire BSMortgage TrustNational Counties BSNationwide BSNatWestNewbury BSNewcastle BSNottingham BSParagon MortgagesPlatformPost OfficePrecise MortgagesPrincipality BSProgressive BSRoyal Bank of ScotlandSaffron BSSantanderScottish BSScottish Widows BankSensible Home FinanceSkipton BSStafford Railway BSTeachers BSThe Hanley Economic BSThe Mortgage WorksTipton & Coseley BSUlster BankVernon BSVirgin MoneyWest Bromwich BSWoolwichYorkshire Bank

Secured loan

If you would just like to borrow money, it’s much simpler if you are a homeowner. You could still be eligible to apply for a secured loan up to around £100,000, by using your home as a deposit against the loan.

However, this should be approached with caution. If you can’t meet your repayments this could lead to you losing your home.

Compare secured loans

Compare a whole range of secured or homeowner loans for borrowing between £3,000 and £80,000.

Compare secured loans

Equity release schemes

Equity release schemes enable older homeowners to release the value in their home as cash. You could consider an equity release scheme if you are a homeowner who has repaid all or almost all of your mortgage.

Typically this is done with either a lifetime mortgage or a home reversion scheme.

  • Lifetime mortgage – You your borrow money against the value of your home, but pay nothing back until your home is sold – either after your death or when you go into long-term care.
  • A home reversion scheme – You sell  your home (or a part share of) to an equity release company. You continue to live in your home until you die or go into long-term care, at this point the company will sell your home.

However, equity release schemes can be expensive depending on the value of your home that is agreed upon, and the property market. What’s more you won’t be able to leave your home to anyone when you pass away.

Read more…

Compare remortgaging mortgages

Compare mortgages for home owners thinking about getting a new mortgage

Remortgaging mortgages