Getting a mortgage when retired – what you need to know
Home >
All >
Getting a mortgage when retired – what you need to know
Becoming a homeowner later in life is not uncommon these days, but is it possible to get a mortgage if you’re retired?
All the fives
It’s true that getting a mortgage becomes a lot harder after the age of 55. First because it is more difficult to prove retirement income than it is to prove a salary, and second because mortgage providers will want to be sure you’re able to pay off the loan during your lifetime.
Pensions and spending plans
Difficult doesn’t mean impossible though. Some lenders are willing to provide mortgage finance to retirees so long as you can prove your income. Sources of income include a private or workplace pension (or a mixture of the two), as well as any savings you might have. These details, along with an outline of your expenditure, will help prove you will have enough to live on and to pay your mortgage for the duration of the term.
Depending on the lender, and your age, you may have to accept a shorter mortgage term or a higher interest rate. This is because most lenders have a maximum age by which they will want the mortgage to be paid off – this can be as high as 85 or as low as 70.
Find the right deal
For help and advice, get in touch and we will work with you to secure mortgage finance that suits your circumstances.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
Other Insights of interest
23rd April, 2024
Residential Property Review of April 2024
Upcoming election has not discouraged potential movers A survey by Savills has found that the…
Read full insight
23rd April, 2024
Commercial Property Review of April 2024
Commercial property market update Latest research from Cluttons indicates that vacancy rates hit 4.1% at…
Read full insight
17th April, 2024
The surging cost of retirement
According to the Pensions and Lifetime Savings Association (PLSA)9, a ‘moderate’ standard of living includes…
Read full insight
17th April, 2024
Confidence returns
Increased investor confidence in equity funds over the last few months has been evidenced by…
Read full insight