Mortgages Over 55

Yes, it may be possible to obtain a mortgage when you are over 55.

There is no single maximum age that applies to every UK mortgage lender. Each lender sets its own rules concerning:

• Your age when the mortgage begins
• Your age at the end of the mortgage term
• The maximum available mortgage term
• Your current and future income
• Whether you are already retired
• The type of mortgage required
• The repayment method
• The property being mortgaged

Some lenders apply a maximum age of 70, 75 or 80 at the end of the mortgage term, while others may consider applications beyond these ages. Certain specialist products do not have a fixed end date.

The lender will need to be satisfied that the mortgage is affordable now and, where applicable, after you retire.

The appropriate mortgage will depend on your circumstances, income and objectives.

Potential options include:

• A standard residential repayment mortgage
• A standard interest-only mortgage
• A retirement interest-only mortgage
• A lifetime mortgage
• A remortgage
• A further advance
• A buy-to-let mortgage

These products are not interchangeable.

A standard residential mortgage usually has a fixed end date and requires sufficient income to support the repayments. A retirement interest-only mortgage can run until a specified life event, while a lifetime mortgage normally allows interest to be added to the loan if monthly payments are not made.

Mortgage advice is important because the most appropriate option will depend on your age, income, equity, future plans and attitude towards leaving an inheritance.

With a repayment mortgage, your monthly payment covers both the interest and part of the amount borrowed.

Provided all payments are made as required, the mortgage should be repaid by the end of the agreed term.

A repayment mortgage could be appropriate if you have sufficient income to afford the monthly payments and the lender is prepared to offer a suitable term.

For example, someone aged 55 could potentially apply for a mortgage term extending beyond their expected retirement age. The lender would then assess whether the mortgage will remain affordable after retirement.

A shorter mortgage term normally produces higher monthly payments but can reduce the overall interest paid. A longer term can reduce the monthly repayment, but it usually increases the total cost.

Mortgage lenders do not all apply the same maximum ages, income rules or retirement criteria.

MortgageKey can review:

• Your age and preferred mortgage term
• Your employment and retirement plans
• Your current and future income
• Your pension arrangements
• Your deposit or available equity
• Your credit history
• Your existing mortgage
• Your monthly expenditure
• Your reason for borrowing
• Your preferred repayment method
• The property being mortgaged

We can then search for potentially suitable mortgage options and explain the costs, risks and repayment requirements.

Where your circumstances require a specialist later-life or equity release product, you must receive advice from an adviser with the appropriate permissions and qualifications.

All mortgages are subject to status, affordability, eligibility and the lender’s criteria.