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Author: Carl Shave-Director
Updated on May 13th, 2024

Mortgages for Over 55s

If you are aged 55 or over, there are now mortgage products specifically aimed at your needs.

Get in touch for a free initial, no-obligation discussion about your mortgage situation.

Do you qualify?

No credit checks & only takes minutes!

If you are already a homeowner, then an Equity Release Lifetime Mortgage can give you access to the wealth tied up in your house tax-free without having to make any payments. A 55+ mortgage works in a similar way, but you just pay the interest. Here, we answer the most-asked questions about mortgages for over-55s.

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Can you get a mortgage over 55?

Indeed you can. Previously lenders would only consider granting a mortgage where the loan was designed to finish at retirement age.
But now, house prices have risen, mortgage durations have lengthened, and people are coming onto the property ladder later in life. Therefore, there are now mortgage products designed for an older age-group. Some products even set the upper age limit at 95!

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Check your eligibility in minutes by completing our Equity Release mortgage calculator

NO CREDIT CHECKS!

How does an over 55 mortgage work?

This type of mortgage is basically a halfway-house between a standard mortgage, or remortgage, and a Lifetime Mortgage Equity Release product.

It is an interest-only mortgage where you pay the interest on the loan each month and retain ownership of your property. At the end of the mortgage period, the loan must be repaid, usually from the proceeds of the sale of the house.

Usually, the minimum loan is £20,000, and the most you can borrow 60% of your property’s value.

What is a reverse mortgage for over 55s?

This is really another name for an Equity Release mortgage, where you release some of the money tied into your home to fund ways to improve your life as you get older.

The term is more commonly used in Canada and the USA.

Are there Buy-to-Let mortgages for over 55s?

In 2015, the law changed regarding protection for pension funds, and customers aged 55 or over became able to access their pension cash to use it in other ways.

Many wanted to invest in a property portfolio, and new mortgage products for Buy-to-Let properties for people in this age group were created. But be careful – many Buy-to-Let mortgages are not regulated.

Be sure to get independent financial advice before cashing in your pension pot and using it to invest in property. Obviously, becoming a landlord entails other responsibilities and costs outside of a deposit, insurance, fees, and interest.

How much can I borrow if I’m over 55?

Like with any type of mortgage, the amount you can borrow will depend on a wide range of things. Some factors that will have a big influence include:

  • Income and outgoings
  • Deposit
  • Credit history
  • The mortgage term you want

All of these things and more will all play into the final amount you can borrow.

From our experience a typical person over the age of 55 can look to borrow about 3.5 – 4 x their income. Although you need to remember that just because someone borrowed a certain amount, doesn’t mean you can too.

What should I consider before taking out a 55+ mortgage?

There are a few things to consider before applying for a 55+ mortgage, they include:

  • Your credit score. Most of the time, mature borrowers have a decent track-record of credit, so this is not as problem. But it’s worth checking just in case.
  • Your income source. Salary, bonuses, and pension will all be looked at by a lender to ensure that you are able to keep up with the payments each month.
  • How the loan will be repaid. Although this may be a long enough time away for you not to want to think about now, you really should consider what will happen when the loan term comes to an end. Will the repayment fall to you, your surviving partner, or your family? And will the market value of the house be enough to cover the loan, if worst comes to worst?

Over 55 mortgage lenders

Many high street banks and building societies now offer mortgages to over 55s. Although, knowing which lender offers the best deal can be difficult.

Typically, the older you get the more limited your options are. However, there are specialist products offered by specialist lenders that are tailored for people that are older.

If you’re unsure about which lender is best for you, get in touch with us today. Our expert advisers will be able to discuss all your options and find you the best mortgage for over 55s.

How can The Mortgage Centre help with a mortgage for over 55s?

Navigating the mortgage market can be challenging at the best of times. That’s why using a broker can make your life much easier, especially if you are not applying for a traditional mortgage deal.

If you are looking to obtain an over 55 mortgage, reach out today. We can organise a free initial, no obligation, consultation to discuss your options.

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Frequently Asked Questions

  • Can I get a mortgage after I retire?
  • Can I get an over 55 mortgage if I’m self-employed?

Yes, it is still possible to obtain a mortgage even if you have retired. Like any mortgage type, a lender will need to be confident that you will be able to make the repayments.

Your deposit level, credit history, whether or not your currently own a home, and any income will all be considered.

If you are looking to obtain a mortgage and you are retired, reach out today.

The short answer is yes, you can! It can be a little more challenging, however, as long as you can prove you meet payments then there should be no reason why you can’t get a self-employed mortgage.

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