Mortgages for the over 50s

If you believe 50 is the new 40 then it should come as no surprise that mortgage options for people over 50 are becoming wider and more flexible.

However, there can be some limits and restrictions to be aware of.

The best place to start looking for a mortgage if you’re over 50 is an independent mortgage advisor, like us.

We know the market so we also know which lenders, especially small banks and building societies, are more likely to look favourably on your circumstances and lend to you.

Whether you’ve had a mortgage before or this is your first one, it’s wise to take advantage of the expertise of a specialist.

We can advise you not only on the best deals, but also the risks you’ll need to weigh up before you take on a repayment agreement when others might be thinking of a mortgage-free life.

Is it too late to buy a house if you’re over 50? 

Definitely not! 

Ask most people over 50 nowadays and they’ll tell you life has plenty to offer that perhaps previous generations didn’t get to enjoy at the same age.

You’re never too old to try something new. Perhaps you’re a first-time buyer? 

It’s easy to get stuck in a renting cycle when we’re younger, especially if you’re working hard and possibly raising a family. Sometimes when adult children leave home, circumstances change and the option to buy becomes a reality.

Most mortgage lenders set age limits for their mortgage products based on your age at the time the mortgage is taken out, as well as your age when the repayment term is due to end.

For example, it is common to see an upper age limit of 65 to 70, as well as a restriction on repayment term to not exceed the age of 70 to 85.

As a result, you’re more likely to encounter shorter terms. For example, a common repayment term is 25 but for those looking to get a mortgage over 50, you’re more likely to see 15 to 20 years to repay the loan.

Why might I need a mortgage if I’m over 50?

There are a number of reasons why you might be looking to get a mortgage if you’re over 50.

The obvious reason is that you’re moving but there are actually a lot of reasons why a mortgage over 50 could be a good option:

• Investing in a buy-to-let property,
• Upsizing to a bigger property,
• Making some substantial home improvements,
• Making a significant one-off purchase, like the holiday of a lifetime or a car,
• Helping a grown-up child on to the property ladder.

Another common reason for a mortgage if you’re over 50 is to release equity in your property. This can help with retirement living expenses, a large purchase or even to help a grown-up child to make their first step on the property ladder.

However, if you’re thinking of releasing equity in your property, bear in mind that it can affect your eligibility for some state benefits and also impacts on what your estate is worth when you die.

Is it harder to get a mortgage if you’re over 50?

The big test when trying to secure a mortgage is your ability to repay the loan so it can be a bit more challenging to secure a mortgage but certainly not impossible.

There are plenty of favourable options available for people over 50 looking to secure a mortgage.

Bear in mind, there are lots of variables that become more probable as we get older, which can make mortgage lenders a bit more cautious.

You’ll need to consider factors like:

• Your current and future employment status – are you considering retirement? Are you likely to see a big drop in income?
• Your credit rating – you have the experience but do you have the wisdom and keep up with your bills and other credit repayments?
• Other investments and income – some mortgage lenders will take into account income from pensions and even part-time work?

Even if this isn’t your first time at the rodeo, no matter what your mortgage is for it’s sensible to speak to an independent mortgage advisor.

At Affinity, we have a team of experts on hand who can advise you on your options and find you the best deal.

Navigating stricter rules

As we are living and working for longer, there’s no doubt that lenders have caught up to the fact that demand for (and the ability to repay) mortgages has increased for older borrowers.

There is more flexibility and products available these days but you must carefully consider if these are right for you.

Even if you’ve bought and sold houses over decades, some of the options available to people over 50 are quite different to your ‘run-of-the-mill’ mortgage.

For example, if you’re looking to release equity you could be looking at one of the following options:

Lifetime mortgages – you can take out a mortgage on your main residence to release equity in a lump sum or smaller payouts, while continuing to own your home. 

You have the option to make regular repayments or let the interest roll-on. 

The loan can then be paid off when you die or go into long-term care and the property is sold.

Home reversion plan – you sell all or part of your home to the lender in exchange for a single payment, or regular cash payments. 

The lender will own part of your home but you can continue to live in your home until you die or go into long-term care.

Both of those options are aimed at borrowers at retirement age and beyond because of the way equity release can help with life after a regular income from employment.

Get the right guide

Mortgages aren’t just for younger generations.

Luckily, with age comes wisdom so you don’t need us to tell you that it’s essential to keep up with your repayments otherwise your home could be at risk of repossession.

When you get in touch with Affinity, you’ll be looked after by a real-life person, no bots, no computer algorithms, we’ll even look after the paperwork.

You’ll be assigned your own expert team member who will use their knowledge and experience to guide you through the process of securing the right mortgage and get you the best deal they possibly can.

Whatever your plans for the future, get in touch.