Mortgages for over 60s

Home
Mortgages
Mortgages for over 60s

Can I get a mortgage if I’m over 60?

Yes, you may be able to get a mortgage if you're over 60. While lenders can be hesitant about lending to borrowers as they get older, there are several that consider applications from those over 60.

Lenders want to see that you can comfortably repay the loan throughout the term. As your income can become less reliable into retirement, they can become more cautious about loaning money.

If you're planning to retire during the mortgage term, you have to provide evidence your income into retirement (using pension forecasts, for example).

There are also specialist products for older borrowers, including equity release options (such as lifetime mortgages and home reversion plans) and retirement interest-only mortgages.

What length of mortgage can I get if I'm over 60?

The length of mortgage term you can get depends on the lender and what their maximum age restrictions are.

Most full mortgage terms are around 25 to 30 years, but you may be offered a shorter term.

For example, if you take out a mortgage at 60 but the lender requires the full loan to be repaid by the time you're 75, you can only get a 15 year mortgage.

A shorter term means higher monthly repayments, but you pay less in interest overall.

Is it more difficult to get a mortgage if I'm over 60?

Yes it can be more difficult to get a mortgage when you're over 60, compared to when you were younger.

This is because banks and building societies are more cautious with lending as you approach retirement, due to your income being less reliable.

To improve your chances of getting a mortgage over 60, you should:

Show the lender you can afford the repayments. If you plan to retire during the mortgage term, you need to evidence your retirement income.
Find out and improve your credit score if you need to. Lenders look at your credit history when you apply so make sure you have a good credit score.
Review your finances and reduce outgoings if possible. Lenders want to make sure you can afford to pay the loan so they normally look at your spending habits.
Compare mortgages or speak to a broker who can do that for you. Make sure you match the requirements for the deal you apply for and pay attention to maximum age restrictions.

What are the other options for borrowing if I'm over 60?

In addition to standard mortgages for over 60s, there are specialist products aimed at older borrowers:

Lifetime mortgages (equity release product)
Home reversion plan (equity release product)
Retirement interest-only mortgages

Lifetime mortgages – A lifetime mortgage is available to over 55s and allows you to release tax-free cash from the equity in your home. You don't need to repay the loan until you die or move into long-term care. Although you can choose to pay off the monthly interest to reduce the loan amount you need to repay at the end.

Home reversion plan – Home reversion plans are available to over 65s. A home reversion company buys your property or a share of it. You can continue to live in your home rent-free until you die or move into long-term, at which point the company can sell it to make their money back.

Retirement interest-only mortgages – With a retirement interest-only mortgage, the loan is secured against your home. You only need to repay the interest each month – when you die or move into long-term care, your property is sold to repay the amount you borrowed.

Need more help?

Can I get a buy-to-let mortgage over 60?

Yes, you might be able to get a buy-to-let mortgage over 60 – if you meet the necessary eligibility requirements.

Buy-to-let mortgages work similarly to residential mortgages. The key difference is that the loan amount is based on the potential rental income of the property.

This might actually make it a little easier to get a buy-to-let mortgage when you're over 60 or retired. While the lender is still likely to consider your income, it's less important to the loan amount as with a residential mortgage.

Buy-to-let mortgages are usually taken out on an interest-only basis.

What is the age limit for getting a mortgage?

There isn't one universal age restriction for getting a mortgage. Lenders have different maximum age restrictions for their deals.

That means you should double check the terms and conditions of the deal to make sure you're eligible.

Some lenders set the maximum age at which you can take out a loan, and others set the age by which you must've paid it back. This might mean you need to take a shorter mortgage term, in order to pay it back by the set age limit.

There are also a few lenders that don't have any age restrictions at all, such as Cambridge and Suffolk building societies.

Can I get a mortgage after I retire?

You may be able to get a mortgage after you retire. But as your income becomes less reliable post-retirement, lenders are more cautious about loaning you money.

You should be prepared to evidence your retirement income when you apply – your pension, for example.

You can also get mortgages which are specifically designed for borrowers who've retired, such as retirement interest-only mortgages or lifetime mortgages.