There are many reasons why you may be considering a mortgage in later life, from releasing funds from your property for home improvements to helping a family member onto the property ladder. Whatever the reason, borrowing in retirement isn’t out of bounds!
Can I get a mortgage at age 75?
You may be eligible for a mortgage at age 75, depending on which type of mortgage you want to take out, how long you want to take out the mortgage for and a number of other factors which are explained below. In fact, we can support borrowers from the age of 55 onwards who are looking at their options in retirement!
We have two ranges available for those in retirement; our 55+ Retirement Mortgages and Retirement Interest Only (RIO) mortgages.
Am I eligible for a mortgage in retirement?
Our 55+ Retirement Mortgages work just like a conventional mortgage; except they are available to applicants aged 55 to 85 with a maximum term based on the oldest borrowers age at the time of application. If you’re 75 at the time of application, for example, we could lend to you on a maximum term of 11 years, so you could take your mortgage to the age of 86.
You could be eligible for a 55+ Retirement Mortgage if;
- You’re looking to borrow £30,000 or more
- Your property is worth at least £150,000
- You want to borrow a maximum of 60% of your property value
- You have an annual income of at least £17,500 (whether you’re applying on your own, or jointly)
- You are a resident of England or Wales
You’ll need to be able to afford the monthly repayments, and if you’re looking for an interest only deal, you’ll need to have a plan in place to repay the capital at the end of your term.
What other options are available to me?
Also available to those aged 55 and over, a RIO mortgage could be an alternative to equity release and could be suitable for you if you want to remain in your own home with no plans to downsize. There is no maximum age with a RIO mortgage, so whether you’re 55 or 75, we could help!
You could be eligible for a RIO mortgage if;
- You’re looking to borrow at least £30,000
- Your property is worth at least £150,000
- You want to borrow a maximum of 55% of your property value
- You have an annual income of £17,500 (per applicant)
- You can afford the monthly interest payments (individually if applying for a joint mortgage)
- At least one applicant is aged 55 or over
- You are a resident of England or Wales
RIO mortgages differ to our 55+ Retirement Mortgages as they are only available on an interest only basis, meaning you will pay the interest off each month. You’ll need to pay off the monthly interest payments throughout the mortgage term, and the original loan amount will not be paid off until a life event occurs, for example, going into long-term care or passing away. Paying the interest off monthly helps to protect the remaining equity in your property.
Who can I speak to about my options in retirement?
We have a dedicated mortgage team who can offer free advice to help you review your mortgage needs, with no visit to a Marsden branch required. Get in touch on 01282 440537* for more information.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.