Getting a mortgage later in life is far more achievable than many people think. Whether you’re in your 50s, 60s or beyond, there are now more options than ever before. MB Associates’ Managing Director Monica Bradley explains.
For many years, it was normal to take out a mortgage in your twenties or thirties and have it paid off by retirement. But times have changed. People are living and working longer, and often going through major life changes such as divorce, remarriage or relocating. As a result, lenders have adapted and borrowing in later life is now much more common.
More choice than before
Many lenders are far more open to older borrowers than they once were. In fact, it’s now possible to secure a mortgage that runs into your 70s, and in some cases even beyond. I often talk to clients who are starting again after a separation or divorce, who can be demoralised when they come to see me. Many often think they are too old to get a mortgage and that they will be confined to renting in their later years. This is just not the case, and it’s heartening for me to let them know the good news that they have options.
If you’re in your 50s, you may still be able to access a 20-25-year mortgage term. If you’re in your 60s and 70s, mortgages are still available. Lenders will look at your retirement plans and future income.
Affordability is key
As with any mortgage, affordability is crucial. Lenders will want to see:
- Your current income and outgoings
- Evidence of savings and financial stability
- How you plan to meet repayments in the future
If your mortgage will continue into retirement, you’ll need to show that your pension or other income (such as investments) will comfortably cover the payments.
Age limit
There’s no official maximum age for applying for a mortgage, but most lenders set their own limits. Typically, the maximum application age is between 65 and 80, and the mortgage term end age range is usually between 70 and 85.
Mortgage terms for older borrowers are often shorter. While this can make borrowing possible, it does mean monthly repayments may be higher compared to a longer-term mortgage.
Different types of mortgages
There are several options available depending on your circumstances:
Repayment mortgages – These are the most common, where you pay off both the loan and the interest over time.
Interest-only mortgages – You may be able to pay just the interest for a set period, typically two to ten years. However, you’ll need a clear plan for repaying the original loan, such as downsizing or using savings and usually a larger deposit.
Retirement interest-only mortgages – These are designed specifically for older borrowers. You only pay the interest each month, and the loan is repaid when you sell the property, move into care, or pass away. This can help keep monthly payments lower.
Bespoke advice matters
Not all lenders take the same approach. Some high street banks may be more cautious, especially if the mortgage runs beyond retirement age. However, specialist lenders are often more flexible.
This is where speaking to a broker can make a real difference. A broker can access a wider range of lenders and products, helping you find a solution tailored to your situation. I always ask my clients what their long-term plans are and we look at the big picture of their situation.
Planning is crucial
Before applying, it’s important to review your finances. Look at your current income and how it might change. Consider when you plan to retire and see what savings and investments you have to support repayments.
With the right advice and careful planning, you can find a solution that works for you. If you’d like to explore your options, speaking to an experienced mortgage adviser can help you understand what’s available and make an informed decision.
