Yes! You can get a mortgage after you turn 50. However, you might face some extra challenges compared to younger homebuyers.
Let's explore what you need to know about mortgaging after 50.
Getting a brand-new mortgage when you're over 50 happens for many reasons:
Many people wait until their 50s to buy their perfect home. Your children might have moved out, and now you want a house that better fits your new lifestyle. Or perhaps you're finally able to afford that home by the sea or in the countryside you've always wanted.
You might want to move to a new area as you plan for retirement. Maybe you want to be closer to family, find a more suitable climate, or live in a community with more activities for older adults. A mortgage for over 50s can help you make this move.
Some people buy additional properties in their 50s as investments. You might want to create rental income to boost your retirement funds or have a holiday home that you can also rent out part-time.
Life doesn't stop at 50! Major life changes like divorce, remarriage, or becoming an empty nester might mean you need a new home and a new mortgage. Lenders understand that mortgages for over 50s need to accommodate these life transitions.
Not everyone buys their first home young. If you've been renting all your life or living in provided accommodation, you might be looking for your very first mortgage after 50. While this can be challenging, many lenders now offer mortgage options for older first-time buyers.
Understanding exactly why you want a mortgage after 50 will help you explain your situation to lenders and find the best mortgage product for your needs.
When you get a mortgage in your 50s, lenders worry about one main thing: Will you still be paying your mortgage after you retire?
Most people earn less money after they retire. Lenders want to make sure you can still afford your mortgage payments on your pension income.
Different lenders have different rules. Some smaller lenders offer more flexible mortgage deals for over 50s. Many mainstream lenders now let people take mortgages that last into their 70s or 80s.
Remortgaging differs from getting your first mortgage because you already own part of your home. This ownership stake is called ‘equity’.
Here's a simple example:
The more equity you have, the more likely lenders will approve your remortgage application. The risk to them of not making back their money if you stopped paying your mortgage is less, so they will feel safer offering you funds.
If you're in your 50s and want to borrow with a mortgage, you need to think carefully about how long your new mortgage will last.
Your income will probably drop when you retire. But your mortgage payments will stay the same. This can cause money problems if you're not prepared.
If you want to borrow more money for home improvements or other needs, try to:
Some people choose to work longer to pay off their mortgage. But ask yourself: "Will I still want to work this job when I'm 65 or 70?"
If mortgaging after 50 doesn't work for your situation, don't worry. You have other choices:
Assuming you already own part of your property, equity release lets you take money out of your home without moving. You don't make monthly payments. Instead, the lender gets paid back when you sell your home or pass away.
Remember: Equity release reduces the inheritance you can leave to your family. Always talk to a professional advisor before choosing this option.
With an interest-only mortgage, your monthly payments only cover the interest on your loan, not the loan itself. This makes your monthly payments much smaller.
The catch? At the end of your mortgage term, you still owe the original amount you borrowed. You'll need a solid plan for how you'll pay back this money eventually.
Some lenders offer ‘retirement interest-only mortgages’ specially designed for older borrowers. These last until you pass away, move into care, or sell your home.
Sometimes the simplest solution is to sell your current home and buy a smaller, less expensive one. This can free up money and reduce your housing costs.
Many people find that a smaller home is easier to maintain as they get older. You might also move closer to family or to an area with better amenities for seniors.
Some families choose to help each other with housing. Your adult children might help with mortgage payments, or you might explore multi-generational living arrangements.
Always get legal advice when mixing family and finances to make sure everyone's interests are protected.
Take time to think about:
Use a mortgage calculator to work out what you can afford. Talk to several lenders about mortgage options for over 50s to find the best deal for your situation.
You can also find out what you’re likely to be asked about when you apply.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Zubin is a personal finance writer with an extensive background in the finance sector, working across management and operational roles. He applies his experience in customer communication to his writing, with the aim of simplifying content to help people better understand their finances.
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