With an ageing population, a steadily rising age of retirement, and first-time buyers becoming increasingly older, there are lots of reasons why you might well be looking at mortgages well into your 50’s.
Whether it’s a lifestyle change because of divorce or wanting to help your children to get on the ladder. Or perhaps it’s simply the prospect of retiring later and wanting to take advantage of opportunities now.
Taking out a mortgage as an over 50 isn’t as uncommon as it used to be.
Can I get a new mortgage if I’m over 50?
In simple terms, yes. In the past, a mortgage term of 25-30 years may have been a significant barrier to those over 50. But with many lenders now allowing you to continue repayments until you’re 85-90, you could still take on a 30year mortgage well into in your 50’s
Financial circumstances are just as important as with any other mortgage, if not more so as future retirement is something that lenders will be mindful of.
Savings for a deposit, and a good (and long) credit history will be beneficial. And proof of future income such as continued employment, private pensions or trusts will show you can afford the repayments.
If this is a joint mortgage application then lenders will want to know how the repayments will be made if one of you dies.
What about remortgaging over 50?
Remortgaging is a popular option for those over 50 for various reasons. Borrowing against the equity you’ve built up in your property over several years is a great way to fund larger projects.
It might be for home improvements to future proof or add value to your home. For a deposit on a second home or even a holiday let. Or perhaps to help a child or grandchild with a deposit for their own home.
You’ll need to check for early repayment charges on any current mortgage term before remortgaging. And if you own your home outright already then this will be seen favourably by lenders.
Are there any other options?
Second charge mortgages allow those that are already homeowners to take on an additional loan as an alternative to remortgaging.
The loan is secured against your home but can be a good way for those with a poor credit rating, early repayment charges, or who are perhaps self-employed to borrow additional funds.
If you are purchasing a property with the help of a shared equity loan, our advice will also cover the shared equity second charge. However, we do not advise on any other second charge mortgages. If you need a second charge mortgage we will refer you to a master broker for second charges, who will be able to advise you.
Alternatively, there are also products aimed just at older borrowers such as lifetime mortgages, that allow you to release equity from your home without an age restriction. Instead, these specialist loans are paid off until you move into long-term care or die, and your property is sold.
You will need to take legal advice before releasing equity from your home as Lifetime Mortgages and Home Reversion plans are not right for everyone. This is a referral service.
Determining which option is best for you can be difficult. But is made easier with expert help, and our experienced mortgage advisers will guide you through the options best suited to you and your individual circumstances and needs.
Simply book a 15-minute discovery call with one of our team by calling our freephone mortgage advice line on 0333 005 0333. Alternatively, please text ADVICE to 82228.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.