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.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.