Can I get a mortgage at 60?

You can get a mortgage at 60 but you might need a shorter mortgage term. 

You’ll also need to show you can afford the mortgage into retirement.

It can be harder to get a mortgage when you're 60 or over. This is because your income is likely to drop when you retire.

You might want a mortgage when you’re over 60 to:

  • remortgage

  • move house

  • buy a house after separation or divorce

The Mortgage Market Review

In 2014, they put in place a set of rules called the Mortgage Market Review.¹ 

The rules mean lenders have to check if a buyer can afford their mortgage over its term.

These rules make it harder to get a mortgage over the age of 60.

As well as mainstream mortgages, over 60s can also apply for:

  • retirement interest only mortgages

  • equity release mortgages

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 age limit is the maximum age you can be at the end of the mortgage term.

For example, Barclays has an age limit of 70. So if you’re 60 you’ll need to repay the mortgage in 10 years.

This age limit varies from lender to lender. 

Some lenders do not have an age limit at all.

More about getting a mortgage if you're over 60 in our guide to mortgages for older borrowers.

When will you retire?

Retirement age can vary from person to person. 

Most lenders state a maximum age at the end of the term. Many also have a rule that “the mortgage must be paid off by the stated age or retirement age, whichever is earlier”.

This rule takes into account your individual retirement plans. This might be State Pension age, or earlier or later.

Some lenders will be happy to lend to you after you have retired. 

They’ll assess if you can afford your mortgage by looking at your retirement income.

This might be money from:

  • a state pension

  • a workplace or private pension

  • investments

  • property

  • savings

  • a job

Mortgage types for over 60s

There are some mortgages designed for those aged over 60. 

These include:

How to improve your chances of getting a mortgage over 60

To get a mainstream mortgage over 60, you need to prove that your income is enough to afford the monthly payments. You’ll also need a decent credit score.

To qualify for equity release you’ll need:

  • to own your home outright (but you can use equity release to pay off your mortgage)

  • enough equity in your property

  • to keep your home in good condition

Lenders for over 60s mortgages

Building societies are usually happier than banks to lend to borrowers aged over 60. 

Many building societies do not have an upper age limit for when the mortgage needs to be repaid.²

Different lenders offer equity release than mainstream mortgages. You should look for a provider that is a member of the Equity Release Council.

The Equity Release Council has a directory of equity release advisers ³ and equity release providers.⁴

An independent adviser can talk to you about how to release equity from your home. 

They can help you compare costs, and understand the down sides of equity release.

Sources

¹ The Guardian: Tougher mortgage rules come into force

² The Building Societies Association: Building societies' lending age limits and retirement interest-only mortgages

³ Equity Release Council: Advisers

⁴ Equity Release Council: Providers

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