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Over 50’s Mortgages

Mortgage lenders have different criteria and requirements when considering applications from buyers aged over 50. Consider consulting an expert broker to understand the best offers, and which lenders offer products that are compatible with your requirements.

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Securing a mortgage for over 50’s

What mortgages are available for over 50’s?

Many more lenders now offer mortgage options for older applicants, since this sector of the market continues to grow and many applicants can provide greater financial stability. However, mortgages for over 50’s remain a specialist product. Most mainstream lenders will have restrictions in place for the length of mortgage term they are prepared to offer, depending on the age of the applicant. If you aren’t sure whether you will be able to obtain a mortgage or don’t know what term would be best for you, give Revolution Finance Brokers a call today, and we will be delighted to help you track down the best options!

Mortgage affordability for over 50’s

One of the most important criteria when considering mortgage products is being able to demonstrate that you can afford the repayments. For over 50’s, this could include pension income, for example, so you will need to consider lenders who accept this income stream when considering how much they can lend.

Remortgaging at over 50

A common reason to be seeking a new mortgage at this stage of life is that an existing mortgage term is coming to an end and that you are looking for the best option to remortgage. You could decide to extend your mortgage term with your current lender or to remortgage through a new lender. Options include:

  1. Extending your mortgage term with your existing lender 
  2. Refinancing your mortgage with your existing lender
  3. Remortgaging through a new lender
  4. Other options available, such as equity release

There may be additional costs including arrangement fees to remortgage through a new lender, however, if you can find a better deal with preferable interest rates it may provide a cost-saving overall. If you are in any doubt as to whether to extend your mortgage term or seek a competitive quote elsewhere, get in touch with us and we will let you know the best deals on the market today.

Redeeming a mortgage

Most people tend to schedule their mortgage to come to an end at their anticipated retirement age, typically at 65. In this scenario, you may find that your lender is requesting that the mortgage be redeemed, however, you still owe repayments against your property. Commonly, people approaching retirement have taken out an endowment mortgage 25 years before, however, find that they have either cashed in their endowment or that the payout on the maturity of the endowment is less than they expected. This can mean that the anticipated payout does not cover the balance required to clear the mortgage. If you find yourself in this situation, get in touch with us on 0330 304 3040 and we will be happy to help find you the best solution.

Applying for an over 50’s mortgage

The application process is the same as with any mortgage. Your lender will assess how much you can afford to repay and will make offers based on what lending they are prepared to offer. Once you find a deal that you would like to proceed with you will need to provide proof of income and security documentation. Usually, the mortgage application process takes around 4-8 weeks, so if you are thinking of remortgaging it is best to allow enough time before your existing term comes to an end to allow the remortgage process to complete in good time.

Mortgage terms for over 50’s

Lenders have different criteria, but for an applicant aged 50, it is normally possible to obtain a mortgage term of 25 years. For applicants aged 65, or around the standard retirement age it is still possible to secure a 25-year term mortgage, although fewer lenders will be able to offer this option. Short-term mortgages are also available and typically have a minimum five-year term. Should you be looking for a longer-term mortgage and have not found the right product for you, drop us an email at info@revolutionbrokers.co.uk and we will match your requirements with the best lenders.

Adding owners to mortgages at over 50

Adding family members to your mortgage application may help secure a new mortgage with the terms that you want. However, make sure that you are all aware of the tax implications including stamp duty payable. If you need advice about the risks and rewards of adding another person to your mortgage, speak to our expert team who can advise on the pros and cons of doing so and what taxes you need to be aware of before you proceed. It is also important to consider the additional applicants’ own residential status, and whether they are likely to wish to apply for their own mortgage in the future. Being a named borrower on your mortgage may impact their future borrowing capacity.

Interest-only mortgages for over 50’s

There are interest-only mortgage options available for applicants aged over 50. As with any application, the lender will consider their lending criteria and will have requirements such as a minimum deposit payment and minimum value of the property. Other lenders will have criteria in place related to your regular income and may have a minimum requirement to be prepared to offer an interest-only mortgage. Additional factors a lender may consider include: 

  1. A maximum age at which the mortgage term must come to an end 
  2. A demonstrable repayment vehicle to evidence how you plan to repay the capital element of the mortgage 
  3. Requirements for what sorts of repayment vehicles they consider acceptable

Mortgage rates for over 50’s

There is a vast range of over 50’s mortgages available. You should consider the interest rates available, the length of the mortgage term you would like and whether you are a first-time buyer or remortgaging an existing property when deciding which lender and which mortgage is right for you. Get in touch today, and Revolution Finance Brokers will be pleased to advise on the best mortgage products for you, the optimum interest rates available on the market, and the best term mortgages to suit your requirements. Our experts scan the market for the most current deals and the most competitive rates and can help you find the perfect mortgage solution to suit your borrowing needs.

FAQs

What do I need to know about over 50’s mortgages?

A mortgage for an applicant over 50 is essentially the same as any other mortgage, although the terms you are offered may vary between lenders. Some will happily offer 20-year mortgage terms, and others will have different requirements about mortgage terms in relation to your expected retirement age.

Is it hard to get a mortgage if I am over 50?

Not necessarily! Our mortgages team excel in securing specialist mortgages, and connecting market leading lenders with applicants to find the right mortgage for their requirements. The most important factor is demonstrating affordability, so if you would like to purchase a property and know you have the means to make the repayments there is no reason why you cannot find a competitive mortgage deal.

What should I do if my mortgage term is ending but I still owe money?

If you need to make a decision and are unsure what route is best, get in touch and we will walk through your options. There are several variables such as your income, how much you owe and what mortgage terms you would like. You might decide to remortgage through your lender, remortgage through a new lender or decide on another plan of action!

How difficult is it to apply for an over 50’s mortgage?

Contrary to most perceptions, applying for a mortgage at over 50 is no more complex than at any other age. The application process will include an affordability assessment, and you will have the opportunity to compare offers and interest rates before choosing the best deal.

What sort of terms are available on over 50’s mortgages?

The terms offered depend on the lender and their internal policies. Many lenders will offer mortgage terms of up to 25 years to applicants at age 50. This may vary the closer to retirement age you are, but it is still feasible to achieve a 25-year term at age 65.

Can I have a co-applicant on my mortgage application?

Yes, you can. If you would like to purchase a property alongside a family member, or have other support such as a joint ownership or guarantor this can help you to meet the affordability criteria. However, make sure that any joint applicants understand their rights to the property and the potential impact on any future mortgages or lending they might be planning to seek.

Check out our handy calculators

Our quick mortgage calculators are designed to give you an indication of how much you can borrow and allow you to consider the different mortgage options available to you.

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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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