Life doesn’t end at 50 so why should lending?

You may have heard in the past that once you’re 50 or over, you’re unable to get a mortgage because lenders are usually less inclined to lend those who are older.

Thousands of people over 50 can afford a mortgage yet the industry doesn’t recognise their wealth of life experience and refuses to lend to them. However, we’re working with a lender who specialises in mortgages for over 50s.

Term Interest Only Mortgage

A term Interest Only mortgage is for borrowers aged 50 or over who are still working or have already retired. You can choose the terms from 5 years up to 30 years. This type of mortgage is a good solution for borrowers looking to stay in their property in the short term before downsizing.  

Key points:  

Borrow up to 65% of the value of the property
Open to borrowers ages 50 to 80  
Up to 30 years maximum loan terms

Retirement Interest Only Mortgage

Retirement interest only mortgage is for borrowers aged 55 or over, those who are still working or have already retired. This type of mortgage has no end date, the interest is paid each month until the property is sold – typically when you or your partner passes away or when you move into long term care.  

Key points:

Borrow up to 75% of the value of the property
Open to borrowers 55 and there is no maximum age
Widest range of fixed rates from 5 years up to fixed for life

An interest only mortgage may help people to:

Use wealth that’s tied up in their property. Quite often people’s property is worth more than their pension and using a mortgage to release cash could provide the funds people may need in their retirement.
Gifting loved ones with an early inheritance and seeing them benefit from the support.  
Remortgaging – it could help those with an existing interest only. A mortgage coming towards the end of its term or if you’re on a higher interest rate.  
Use a mortgage to buy a new property
Consolidating debt
If you’re over 50 and looking to get a mortgage, get in touch with us to discuss your needs today. Call us on 01270 443510 or complete our enquiry form and we’ll be in touch whenever is best for you.

The purpose of this blog is to provide technical and generic information and should not be interpreted as a personal recommendation or advice.