Mortgages Over 65

Yes, it may be possible to obtain a mortgage when you are over 65.

There is no single maximum age that applies across the UK mortgage market. Each lender decides:

• The maximum age when an application can be made
• The maximum age at the end of the mortgage term
• The longest available mortgage term
• Which types of retirement income it accepts
• Whether employment income can be used
• Whether interest-only borrowing is available
• Which properties it will accept

Some lenders require a standard residential mortgage to be repaid by a specified age, while others consider borrowing into a customer’s 80s or beyond.

Retirement interest-only and lifetime mortgages can operate differently because they may continue until the property is sold or a specified life event occurs.

Age is only one part of the assessment. Your income, expenditure, deposit, property, credit history and reason for borrowing will also be considered.

Several types of mortgage may be available to someone over 65.

Potential options include:

• A standard 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 work in different ways.

A repayment mortgage requires monthly payments towards both the interest and the amount borrowed. An interest-only mortgage requires a credible plan for repaying the original loan.

A retirement interest-only mortgage generally requires monthly interest payments but may not have a conventional fixed end date. A lifetime mortgage may allow interest to be added to the loan instead of requiring compulsory monthly payments.

The right option will depend on your income, equity, objectives and future plans.

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

Provided you make all the required payments, the mortgage should be fully repaid by the end of the agreed term.

A repayment mortgage may be appropriate if you have sufficient regular income and the lender is prepared to offer the term you need.

The available term may be shorter for an applicant over 65 because some lenders have a maximum age at the end of the mortgage. A shorter term produces higher monthly repayments, although it will usually reduce the total interest payable.

Other lenders may consider longer terms where pension or other retirement income is sufficient and sustainable.

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

MortgageKey can review:

• Your age and preferred mortgage term
• Whether you are working or retired
• Your pension and other income
• Your deposit or available equity
• Your regular household expenditure
• Your credit history
• Your existing mortgage
• Your reason for borrowing
• Your preferred repayment method
• Your future financial plans
• The property being mortgaged

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

If your circumstances require a lifetime mortgage or another form of equity release, you must receive advice from an appropriately qualified and authorised equity release adviser.

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