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.