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What are the options for mortgages for over 50s?
Just because you are over 50, this does not mean that you do not still have plenty of mortgage options.
For example, if you are 50 years old and planning to work until you are 80, there are still lenders that can offer longer mortgage terms to facilitate your requirements.
Different lenders have different criteria around the maximum age that they lend to. For example, some cap at state retirement age whereas some may be able to accept a mortgage into retirement and accept where there is an income until age 80.
This will depend on the mortgage lender so best to speak with an experienced mortgage adviser who can tell you your options.
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What is the maximum age a lender will go to?
Although different lenders have different criteria when it comes to the maximum age that they will lend until, some lenders can go as high as age 80 for people with jobs that can be worked until that age.
The underwriter would need to be comfortable that the job would make that possible. For example, they view an office administrator differently than a scaffolder due to the manual nature of the work.
Some lenders are not concerned about the maximum age if the income in retirement is enough to support the mortgage.
For instance, if somebody had a final salary pension that was more than enough to cover the affordability assessment for the mortgage, some lenders do not have a maximum age that they lend until.
An experienced mortgage adviser would be able to confirm what the options are in your situation.
Do you get residential mortgages for over 50s?
Yes, the mortgages mentioned above refer to the options available for residential mortgages.
These are not special types of lifetime mortgages but standard residential products available to people still working.
In society today, the age of 50 is still very young and many people work for a long time past this age.
As a result, there are plenty of residential mortgage lenders that can offer long terms to allow these people to stay in their homes.
Each lender has its own rules on retirement ages so best to find an experienced mortgage adviser.
Do you get buy to let mortgages for over 50s?
Yes, buy to let lenders lend to people over 50 and many will still offer a long-term such as 25 to 30 years.
Buy to let lenders understand that many people use their buy to let properties generate an additional income in retirement.
Therefore, forcing people to pay back their mortgages at retirement age would cause a large problem with this plan.
As a result, knowing that the properties will be tenanted generating an income for the applicants, many buy to let lenders can comfortably go to until age 80, 85 or even age 100 without needing the buy to let mortgage to be repaid.
Each lender has its own criteria so talk to an experienced mortgage adviser.
Do you get lifetime mortgages for over 50s?
If you are aged 50, you are still a bit too young to qualify for a lifetime mortgage.
Lifetime mortgages are for people aged 55 and over. Another term for lifetime mortgages is equity release.
Equity release mortgages can be used to raise money from your home or purchase a new property without the obligation to make mortgage repayments.
If you do not make mortgage repayments, the balance of your mortgage will roll up.
Although this will suit some people, it will not suit everybody. It is an expensive way to borrow due to the effect it has on your equity so always take professional advice if you are considering an equity release mortgage.
Do you get mortgages for over 50s with bad credit?
Many lenders will offer mortgages for people over the age of 50 that have adverse credit on their credit file.
Bad credit, normally means a complex mortgage, and issues can come in all shapes and sizes.
When people talk of bad credit it can mean many things such as debt management plans, arrears, defaults, individual voluntary arrangements, repossessions, county court judgements or bankruptcies.
Your mortgage adviser would need to get a full understanding of what the bad credit was when it happened, why it happened, how much it was for and whether it has now been repaid.
Once your mortgage adviser knows the full situation regarding your bad credit, they can then look for a suitable mortgage lender.
If you would like to know more about your credit history, you can go to Check My File.
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Do you get commercial mortgages for over 50s?
People over the age of 50 can certainly get commercial mortgages on properties.
The lenders treat this application like any other and need to know your full plans with the property.
For example, do you plan to occupy the building yourself and run a business from it or do you plan to rent it to another business?
In both scenarios, your age will not be so important and the lender will be more concerned about your ability to make repayments on the mortgage.
If you would like to know your options for commercial lending, please complete the contact form and I NEED ADVICE can match you with an experienced commercial mortgage adviser.
Do I need a special type of mortgage adviser mortgages for over 50s?
If you are just taking a standard residential mortgage, you would not need a specialist broker for lending past the age of 50.
As all lenders can offer this, it will just depend on your situation so look for an experienced mortgage adviser that can help you.
However, if you are over the age of 55 and plan to take a lifetime mortgage, this requires an additional qualification for mortgage advisers to be able to advise on this subject. As a result, you will need a specialist lifetime mortgage adviser.
Similarly, if you plan to take a commercial mortgage, not every mortgage adviser will advise on this type of transaction.
In this situation, it would be recommended to look for an experienced commercial mortgage adviser who can give you individual advice.
For any of the above, I NEED ADVICE can match you with a suitable mortgage adviser if you complete the contact form.
Conclusion
It is possible to get a mortgage for over 50s and there are still plenty of options available.
Not all options will suit every person so it is always recommended to seek a professional who can give you individual advice.
If you would like I NEED ADVICE to match you with a suitable mortgage adviser to give you advice with no obligation to proceed, please complete the contact form.
They are experienced, which can boost your chances of being approved.
