A quick overview of mortgages for pensioners
While many people assume getting a mortgage in retirement is impossible, "mortgages for pensioners" refers to standard residential mortgages that are available to older borrowers. Unlike equity release, these are regular home loans where you make monthly repayments, but the affordability is calculated based on your pension income rather than a salary.
You can read more about them in our complete guide to mortgages for pensioners.
Key features of mortgages for pensioners
Here are the main features of pensioner mortgages that distinguish them from standard lending and equity release:
-
Income-Based Affordability: Lenders assess your ability to pay based on your pension income (state and private) and investment income.
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Maximum Age Limits: Unlike lifetime mortgages, these loans usually have a maximum age cap for when the term must end (typically between 70 and 85).
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Mandatory Repayments: You must make monthly payments (either capital and interest or interest-only).
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Standard Rates: You often have access to standard market rates, which can be lower than equity release rates.
Number of lenders available for older borrowers
Generally speaking, the older you are, the harder it is to get a mortgage but many lenders offer specialist products for senior borrowers.
This table gives you an idea of roughly how many available mortgage providers there are for your age bracket.
|
Age |
Approx. Number Of Lenders Available |
|
75-80 |
50 |
|
80-85 |
35 |
|
85-90 |
18 |
|
No upper age limit |
12 |
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FAQs
It is difficult to borrow a significant amount on just the State Pension due to affordability checks. Most lenders will require a private pension or other income sources to approve a loan size that makes buying a house viable.
Find a better later-life mortgage on Money Helpdesk
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
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