Can I get a mortgage at 60?

Traditionally, the age limit for mortgages was set at 65 years. But now times are changing, we’re marrying later, buying houses later in life, and facing financial insecurity that might force us to borrow later in life.

If you meet the eligibility requirements for getting a mortgage, then yes, you can get one at age 60. However, you may need to work longer hours to qualify for a lower rate, you may also have fewer choices of deals than a younger. The best way to find out what you qualify for is to talk to a Mortgage Adviser who understands which mortgage lenders specialise in mortgages for older borrowers.

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Can I get a mortgage after I retire?

Yes, getting a mortgage after retirement is definitely possible. You should be accepted as long as you can prove to the lender that you can pay back the loan repayments every month.
People often think banks only want to focus on helping young buyers get onto the property ladder through schemes such as the help-to-buy scheme, but this is a common misconception. Banks don’t look for a specific age for mortgage applicants, they only favour good cash flow, low-risk individuals etc.
If someone has a secure retirement income, they should be able to get a mortgage. Their monthly income must cover their monthly repayments. through a credit report.

Things that can help you get accepted:

  • Having a decent amount of savings for a deposit.
  • Owning your current home outright – means you can equity release from the property. One type of mortgage where this is possible is an equity release mortgage.
  • Having a good credit score and strong credit history. This can be checked One way in which credit scores can be improved is by paying back credit card debt on time.
  • Having a big enough pension pot for the property, having a private pension can help you get a larger mortgage.
  • Having a large cash lump will mean you can raise a more substantial deposit, this usually means you will get a better mortgage deal with a lower mortgage rate.

The older you are, the stricter the mortgage lending criteria

Typically, as you grow older you’ll probably be offered a shorter term on your loan than someone who is younger. This could be the same even if you are, let’s say, 10-15 years younger than the lender’s maximum lending limit. You may also find that you’re given fewer offers. For example, it may be harder to find loans that offer lower monthly payments.

If you’re an older borrower and you still have a few years left on your current mortgage, you might want to think about it instead of finding a new deal. While you may get better terms from your current lender, you must still meet their eligibility criteria for approval.

If that still proves difficult, you could use a retirement interest-only (RIO) mortgage or a lifetime mortgage to clear your existing mortgage. With this type of lending, nothing is due for repayment until you’ve passed away or entered permanent long-term care, therefore avoiding strict lending criteria like age limits.

How to get a mortgage for over 60s?

You’ll need to commit to paying off the loan before you reach the lender’s age limit. This upper age limit varies from lender to lender. This age limit is the maximum age you can be at the end of the mortgage term.

For example, Barclays has a maximum age limit of 70. So if you’re 60 you must repay the mortgage within 10 years.

This age limit varies from lender to lender – some lenders do not have an age limit at all.

You must prove you can afford a mortgage, and avoid any bad credit, a good credit rating is a crucial factor in increasing your chance of mortgage approval.

If you find out that you have a bad credit history, you can contact a mortgage broker who can help you with a suitable mortgage deal.

Types of Mortgage for over 60s

  • Fixed-rate mortgage – an interest only loan in which the interest rate does not change during the life of the loan. This means that if you pay off your mortgage early, you will be charged less than if you had paid it off at its full term.
  • Variable rate – allows borrowers to pay interest rates that change over time. They can be fixed for a specific period of time or they can adjust based on an index like LIBOR.
  • Tracker rate – interest rates that adjust periodically based on changes in market conditions. They can be fixed for a set period of time (such as 1 year) or they can move up or down at certain intervals.
  • Discount rate – a loan where the lender pays less than the full amount of money back to the borrower. The lower the interest rate, the better for borrowers who need to borrow large amounts of money. However, the higher the interest rate, the more money lenders make.
  • Stepped rate – a loan where the interest rates change based on how much money you borrow. The lower the amount borrowed, the higher the interest rate. This means that when you borrow less money, you pay less interest. Stepped rate mortgages are usually offered by banks, building societies, and other financial institutions.
  • Capped rate – a loan where the interest rates do not increase after a certain point. This means that the borrower pays less interest for the same amount borrowed. The advantage of having a capped rate mortgage is that the monthly payment stays the same throughout the life of the loan. However, the disadvantage is that the interest rate may be higher at the beginning of the loan term.
  • Joint Mortgage – when two people borrow money together for a home purchase. The lender usually requires both parties to be present at the closing table.

Next Steps – Mortgage over 60 years old

Getting a mortgage over 60 years of age is a complicated process but not impossible. Every mortgage lender has different lending criteria for people over 60 years of age. You will have to find out what those criteria are before applying for your mortgage. As an expert retirement mortgage advisor, we can help you to get the best mortgage deal at your age. Feel free to contact us today!

About The Author

mortgage broker damian youell

See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.