- Residential and Buy to Let
- Interest Only and Repayment
- Earned Income, Pension Income and Pension Projections
- No Maximum Age Lenders
- Low Rates
- Guarantors Considered
- Lending into Retirement
Mortgages for the Over 60’s to 90’s
In assessing whether a mortgage is suitable the Regulator, the Financial Conduct Authority, has always been very clear with mortgage lenders, that the mortgage must be affordable. It has never given guidance to either banks or Building Societies that those over a certain age cannot obtain finance, yet may customers over the age of 60 face greater difficulties in securing finance at competitive rates. When it comes to securing finance, many home loan lenders have very strict rules when it comes to age limits and lending into retirement. The individual mortgage companies have set up these rules, as many deem lending to the older population a greater financial and reputational risk. We do not share this view.
Typically, when we speak to our older customers, they confirm they are in receipt of pension income which is guaranteed. This is unlike when they were working and income was dependent on salary and their continued employment. Many older borrowers and pensioners are able to budget more, as they are not prone to the same fluctuations in income that those in the workforce are subject to. In addition, over the course of their lifetime, they have often built up significant equity in their property, have successfully previously had credit and therefore provide a lower, not higher risk to lenders.Read More >>
We assist a number of people over 60 who have faced a difficult time finding competitive mortgage finance. People are not only living longer, but they are working beyond retirement and those who have retired are in receipt of a pension. The reality is that many are earning more over the span of their lifetime than ever before and this coupled with advances in medical science, mean many of us are fitter than ever before.
Many customers who make contact realise that we can obtain them a far more competitive deal than they are currently on with their existing lender. For those looking for a new mortgage, they realise that good homeowner deals for pensioners do exist.
We provide a number of finance options for individuals over the age of 60, to not only obtain the mortgage they desire, but importantly ensure they are on payment plans within budget and that they can afford. We can look at finance on a repayment basis, where the capital as well as the interest is repaid or on an interest only basis. This would usually involve some form of investment in the background, such as a pension, premium bonds or an ISA savings plans. We have success with many applicants using later downsizing to a smaller house or flat at some time in the future, as a realistic and appropriate vehicle to pay off the loan later.
We successfully assist those over 60 with either a residential mortgage on your current home, or on a new home you wish to purchase. In addition, we can also provide you with finance to purchase or re-mortgage a Buy To Let property which is to be let out.
On initial contact we will take you through a full mortgage questionnaire and ascertain your needs and requirements. During this process, we will assess your affordability using the lender’s own affordability calculator to confirm the chances of securing your requested loan. We will need to ensure that you cannot just afford the mortgage now, but that it remains affordable in the longer term, given the mortgage is a financial liability. We will be able to fully advise you on the monthly mortgage repayments and instalments.
In order to support your application to the lender, we will need to appropriately identify you by way of a passport or driving licence and confirm your address proofs through either a utility bill or council tax statement. We will also need to corroborate your income details by way of your pension and bank statements. It is crucial for our clients to be able to prove they have the ability to repay the loan and having all the documentation showing you are receiving pension payments will vastly improve your success rate.
When securing a mortgage, it is important to ask yourself some important questions. These will include, how much do you want, what do you need, what can you afford, what budget have you set, what type of mortgage do your require, be that interest only or a repayment. In addition, you will need to be comfortable with the length of the mortgage term and how long you will be committed to the actual mortgage lender.