Mortgages for older borrowers

mortgages for older borrowers

Can I get a mortgage as an older borrower?

Yes you can, up to age 105*

  • To age 65 is no problem for all lenders
  • To age 70 is acceptable for many lenders
  • To age 75 is managed by a few lenders
  • To age 85 has started to become available to the market
  • To age 105 is possible on our Exclusive deal

As the world has changed and mortgage borrowers are finding themselves with outstanding mortgage balances later in life, the mortgage market has been slow to react.

Fortunately, some Lenders see the potential in mortgage lending for the older borrower and are ready and willing to offer older borrower mortgage lending.

Exclusive mortgage to age 105

Our new mortgage product for the older borrower offers

  • Rates from 3.30% (pay from just £275 pm per £100,000 borrowing)
  • No commitment to capital repayment (you choose how you repay the capital)
  • Modest fees – £999 lender & £797 broker (can be added to the loan)
  • Maximum term to youngest mortgage borrower’s 95th birthday
  • Most incomes sources accepted – including earned income, investments, pension, and rental income
  • Lending from £20,000 up to £500,000
  • Maximum age on application 85 (youngest mortgage borrower)

Key issues for older borrowers

Older borrowers can have additional difficulties arranging mortgages, even where mortgage companies advertise lending to 75 or 85.

  • Credit history – a poor credit history is a problem as lenders offering mortgage products for older borrowers like clean credit
  • Applications age – although lenders can let mortgages run well beyond retirement age, they want mortgage application before age 65 in most cases
  • Affordability – when lending beyond normal retirement age, lenders generally like to see proof of retirement income and will not consider earned income
  • Maximum lending – shortened mortgage terms due to age makes affordability calculations markedly reduced

Fortunately, our exclusive mortgage product for older borrowers avoids many of these issues.

Traditional options for older mortgage borrowers

The standard mortgage option for the older borrower is the equity release or lifetime mortgage market.

This is well developed in the UK and offers competitively priced and flexible solutions for many older borrowers.
Importantly, this market is much more borrower friendly and better regulated than in the past and deserves a second look.

With equity release or lifetime mortgage products you can:

  • Borrow – even with a poor credit history
  • Borrow – on a limited income
  • Borrow – without commitment to monthly repayments

Buy to Let solutions for older mortgage borrowers

The buy to let mortgage market for the older borrower is still relatively tricky and the majority of mortgage lenders ask that buy to let mortgages are repaid the 65 birthday of the mortgage holder.

Given that, there are still buy to let lenders that cater for the older borrower with options available to age 75 or 85.

Limited companies for buy to let mortgages and the older borrower

Many buy to let investors are taking a closer look at holding their buy to let investment properties in a Limited Company. This looks particularly attractive following recent tax changes.

Shares in a LImited Company can be sold or gift to and from any adult regardless of age and holding buy to let property within limited companies given an increased degree of flexibility to the older borrower.

*Example for Exclusive older borrowers mortgage product, one Partner ages 82, the other aged 72.  Mortgage product can run until 95th birthday of youngest applicant (which makes older applicant 105)

share this content