Here’s What You Need to Know...
Getting a mortgage later in life might feel a bit unexpected, but it’s more common than you think. While many mortgages traditionally span 25 years or more, there are plenty of flexible options available for those over 50—whether you’re approaching or already in retirement.
Let’s break down the essentials of securing a mortgage when you’re over 50:
What is the Eligibility Criteria?
Standard residential mortgages in the UK often come with upper age limits, but there are lenders who offer more flexible options for those over 50. Eligibility criteria will vary depending on the lender
How Much Can I Borrow?
Most lenders allow applicants to borrow up to 4 to 4.5 times their annual income, depending on affordability assessments.
Do I Have to Make Regular Repayments?
Yes, you can choose to make:
- Interest-Only Repayments
- Capital and Interest Repayments: Pay both, reducing the loan overtime
When Do I Have to Repay the Full Loan Amount?
The loan is typically repaid in full when:
- The mortgage term ends.
- The property is sold.
- The homeowner moves into long term care or passes away.
Important Information
You should always think carefully before securing a loan against your property.
A lifetime mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits.
Clearing an existing mortgage with a lifetime mortgage may result in higher cost of borrowing.
We charge a fee for later life mortgage advice. The fee is up to £995.
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Want to Learn More?
Explore our Mortgages for Over 50s Guide—perfect for those approaching or enjoying retirement. It’s packed with answers to your questions and clear advice on the mortgage options available to you in later life.
Other Options to Consider
Retirement Interest-Only Mortgage
A Retirement Interest-Only mortgage is a loan secured against your home. You’ll make monthly interest payments, while the loan itself is typically repaid when you pass away or move into long-term care.
Lifetime Mortgage
A lifetime mortgage is a loan secured against your home, allowing you to access its value without the need for monthly repayments—unless you choose to make them.
It’s important to note that a lifetime mortgage will reduce the value of your estate and could impact your eligibility for means-tested benefits.
Getting a mortgage in later life can feel challenging, but it doesn’t have to be. We offer a range of tailored options for homeowners aged 50 and over, making it easier to access the equity in your home (or multiple properties) without needing to sell or downsize.
No, you don’t need to be retired, but you must meet the minimum age requirement for the specific mortgage type. Other eligibility criteria will vary depending on the lender and mortgage product.
Yes, you can release equity from your property to help your child purchase a home or reduce the size of their mortgage. It’s a practical way to provide financial support while maintaining your own living arrangements.
What Are the Costs Associated with Mortgages for Over 50s?
Costs may include:
- Broker Fee: For expert advice.
- Lender Arrangement Fee: Charged by the lender.
- Legal Fees: For the conveyancing process.
- Valuation Fees: For assessing your property.
Some lenders offer no upfront fees, while others may require them. We’ll help you understand the costs involved.
Absolutely! Many homeowners use mortgages for over 50s to fund renovations, adapt their homes for mobility needs, or carry out essential repairs. It’s a great way to invest in your property while maintaining your lifestyle.
A lifetime mortgage is a type of equity release for homeowners aged 55 and over. It allows you to access the equity in your property without selling it, with funds available as a lump sum or in regular payments. The loan is repaid when you pass away or move into long-term care.