If you want to take out a mortgage when you’re in your 50s or older, how easy is it to do? Which lenders offer mortgages for over-65s?
Mortgage lenders’ maximum age limits
Many lenders will let you take out a loan as long as it’s repaid by your 75th birthday, although some lenders are more flexible. The age limits I’ve quoted below are for residential mortgages, as some lenders will let you repay a buy-to-let mortgage until you’re older.
Barclays: You must have repaid your mortgage by the time you reach 70 or by the time you’ve retired – whichever is sooner.
Bath Building Society: There’s no specific upper age limit.
Chelsea Building Society: You must have repaid your mortgage by the time you reach your 75th birthday.
Clydesdale Bank: You must have repaid your mortgage by the time you reach your 75th birthday.
Halifax: Halifax has announced that it will let customers repay their mortgage up until their 80th birthday from Monday (9th May).
HSBC: There’s no specific upper age limit but mortgages that are due to be repaid after the age of 75 will be reviewed on a case-by-case basis.
Hodge Bank: This bank is a specialist equity release lender, but in March it launched its 55+ mortgage, which has an upper age limit by which it must be repaid of 95. Interestingly, Hodge will lend to people who have an interest-only mortagage and, according to David Hollingworth of London and Country mortgage brokers, it will let you use equity in your property as a way of repaying the mortgage. “If you’re planning to downsize, Hodge will look at how much equity you could end up with and whether, realistically, you’d be able to downsize in your area.”
Leeds Building Society: You must have repaid your mortgage by the time you reach 75 or 80 for buy-to-let properties. Shared ownership mortgages must be paid off by the time you’re 70.
Mansfield Building Society: This building society has specific products that will let you repay your mortgage up to the age of 80.
National Counties Building Society: There’s no specific upper age limit.
Nationwide: It raised its maximum age from 75 to 85, effective from May 9th. The change means that if you’re an existing customer, you can take out a mortgage up until you’re aged 80, as long as it can be paid off by the time you’re 85. The maximum loan-to-value mortgage you will be able to take out is 60% and the most you can borrow is £150,000.
Market Harborough Building Society: It will lend up to the age of 85 if you have enough retirement income, income from other earnings or a combination of both.
Metro Bank: There’s no upper age limit on mortgages, as long as you meet the affordability criteria.
NatWest: You must have paid off your mortgage by the time you reach the age of 70.
Saffron Building Society: This building society will lend up to the age of 75, but if you’re going to have a mortgage beyond the age of 65 you’ll need to provide evidence of how you’ll repay it.
Santander: If any part of the loan is on an interest-only basis, it must be paid off before you reach your 65th birthday. If the mortgage is a repayment one, the mortgage can be repaid up until your 75th birthday. However, the bank doesn’t lend mortgages that are due to be repaid after someone’s retirement date (or 75, if that’s sooner).
If you’re an existing customer and you don’t want to borrow any more than your current mortgage, Santander may let you borrow beyond your selected retirement date.
Tesco Bank: You must have repaid your mortgage by the time you reach your 75th birthday.
Yorkshire Bank: You must have repaid your mortgage by the time you reach your 75th birthday.
Yorkshire Building Society: You must have repaid your mortgage by the time you reach your 75th birthday.
If your lender has a low maximum age limit
If you are with a lender that has a low upper age limit, you may need to remortgage if you can’t repay the loan by then. “If you’re on a good mortgage deal and/or you have hefty penalties to pay, you may want to wait until the deal runs out,” says David Hollingworth of London and Country mortgage brokers. “But don’t wait until the last minute to do something – give yourself enough time to sort it out.”
Proving your income
You will still have to show that you can afford to make the monthly mortgage payments, if your mortgage goes beyond your retirement date. Mortgage lenders will want to see your bank statements, and either pension statements or evidence of pension income you’re receiving. David Hollingworth of London and Country mortgages says that, despite the pension freedoms that were introduced in 2015, most mortgage lenders still want to see how much income have, not how much you have in your pension fund.
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