Mortgages for the Elderly

Being someone who is approaching retirement age no longer excludes you from receiving approval for a mortgage application. In fact, many mortgage lenders are finding that allowing the over-60 crowd to get a mortgage will help them stay competitive in the world of lending. However, if you are over 60 and are looking for a mortgage, there are a few things that you need to know.

Age Matters Somewhat

Age used to matter significantly for those shopping for a UK mortgage, as anyone over 60 was considered a dangerous risk. However, things are gradually changing, which is good news for older individuals. Mortgages for the elderly are becoming more and more common.

Of course, lenders will still consider your age when offering you a mortgage. That being said, you can qualify for a traditional mortgage if you shop hard enough. If you are not able to qualify for this type of mortgage due to your age, there are other mortgage products that may work for you.

Considerations When Applying for Mortgages for the Elderly

The first thing the lender will consider when deciding whether or not to approve your mortgage application is the amount of the mortgage. If you can place a sizeable down payment on the property, thus requiring you to borrow quite a bit less than the home’s value, you are more likely to be approved. You also will need to consider your current income and how much you can realistically afford to repay on a loan.

Because of your age, you may be offered a loan with a shorter term than a young borrower. The chance of being approved for a 30-year mortgage is quite small. If you are over 70, you may not be able to get a mortgage with a term of less than 10 years. However, interest-only mortgage and repayment mortgages are both available for the elderly. Choose a repayment mortgage if at all possible.

Finally, you will have the option of choosing a fixed or variable-rate mortgage. Fixed rate mortgages carry higher interest rates, but that rate is guaranteed for the life of the loan. Variable rates start out lower, but they can increase or decrease depending on what the market does.

Elderly people now have many options when searching for mortgage. Mortgages for the elderly have specific stipulations that may not be attached to traditional mortgages, but they are available. Talk to your mortgage broker if you are in the market for this type of mortgage product to find out all of your options.