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Insights
Can you get a mortgage after 75? New options for older homeowners
by Melisa Cindil
Getting a mortgage later in life is becoming increasingly common as more people buy homes later, move during retirement or continue to have mortgage commitments beyond traditional retirement age.
For homeowners and buyers wondering “can I get a mortgage after 75?”, recent changes within the mortgage market show that age does not necessarily have to prevent you from buying, moving or remortgaging.
New later-life mortgage products are being introduced to give older borrowers greater flexibility, with some mortgage terms now potentially extending into a borrower’s 80s, subject to affordability and individual circumstances.
Can you get a mortgage over the age of 75?
Potentially, yes.
A growing number of later-life mortgage products are designed for borrowers whose mortgage term extends beyond their expected retirement age.
In some cases, mortgage terms may be available into a borrower’s 80s, although eligibility will depend on factors such as income, pension provision, affordability and the amount being borrowed.
This reflects a wider shift in the UK property market, where homeownership journeys are becoming increasingly varied.
Who are later-life mortgages designed for?
Later-life mortgage products can potentially help several different types of buyer or homeowner.
Later first-time buyers
It is increasingly common for people to purchase their first property in their 40s or 50s.
For buyers entering the property market later in life, more flexible mortgage criteria could provide additional opportunities to secure a home while taking future retirement income into consideration.
Homeowners moving in their 50s and beyond
Reaching your 50s, 60s or 70s does not necessarily mean your next property move needs to be a downsizing exercise.
Some homeowners may want to purchase a larger home, relocate to a new area, move closer to family or find a property that better suits their long-term plans.
Later-life mortgage options could potentially give these buyers greater flexibility when considering their next move.
Homeowners looking to remortgage in retirement
Older homeowners may also want to remortgage their existing property.
This could be for a number of reasons, including funding home improvements or adaptations, helping family members financially or restructuring household finances during retirement.
How does mortgage affordability work in retirement?
Being able to obtain a mortgage later in life will still depend heavily on affordability.
Lenders may consider a combination of current earnings, projected retirement income, pensions and other sources of income when assessing an application.
Where a significant part of the mortgage term will continue into retirement, expected retirement income is likely to play an important role in determining affordability.
This means having a clear understanding of your pension provision and future income can be particularly important when considering a mortgage later in life.
Why are mortgages for older borrowers changing?
The traditional property journey has changed significantly.
People are buying their first homes later, working for longer and making major property decisions at different stages of their lives.
At the same time, some homeowners may still have a mortgage when they reach retirement, while others may deliberately choose to borrow later in life to facilitate a move.
Mortgage lenders are therefore beginning to introduce criteria that better reflect the realities of modern homeownership.
Could a later-life mortgage help you move home?
If you are considering moving but have been concerned that your age may restrict your mortgage options, it may be worth speaking with a qualified mortgage adviser before ruling out a move.
Depending on your circumstances, there may be options available for:
- Buying a property later in life
- Moving home after the age of 50
- Downsizing while retaining a mortgage
- Remortgaging during retirement
- Funding improvements to your existing home
- Helping family members financially
- Restructuring borrowing ahead of retirement
Mortgage eligibility will vary considerably between lenders, so receiving individual advice is important.
Thinking about moving in Essex or Suffolk?
Whether you are considering downsizing, relocating, moving closer to family or simply finding a home that better suits the next stage of your life, knowing the value of your current property is a good place to start.
At Oakheart Property, we help homeowners across Essex and Suffolk understand their property’s current market value and plan their next move with confidence. If you are considering selling, our local property experts can provide an up-to-date market appraisal and talk you through current buyer demand in your area.
Thinking of moving? Contact your local Oakheart Property team to arrange a free, no-obligation property valuation.
