Mortgages For Over 60 Year Olds’
Low Rate Finance Products For Senior Homeowners
1st UK has some excellent home finance lenders for the over 60’s
How can the over 60’s get such low rate finance?
- Two main reasons, firstly a pension company or the state is unlikely to default on a pension liability. Secondly, lenders consider the UK residential property market to be stable, and peoples homes offer excellent quality collateral. These facts make lending to people in their 60’s and older, exceptionally low risk.
What if I can’t make a monthly payment or don’t want to?
- If you’re looking to access cash tied up in your home, there are some very attractive offers available to you.
Access rates similar to those offered by prime banks to younger people. Discover mortgage lenders that understand the needs of senior borrowers.
What You Should Know About Securing A Mortgage Over The Age Of 60
Individuals over the age of 60 often have a difficult time finding a mortgage.
In years past, older individuals would be burdened with the task of not only finding a mortgage company willing to work with them but also finding a mortgage plan that works for their lifestyle and their budget.
Although this has been the way for quite some time, being informed about mortgage options and researching different companies can often reveal some brokers who are willing to work with older applicants.
The medical field has made immense strides when it comes to improving our lives – individuals are not only living longer but they are working longer and earning more over the span of their lifetime.
Sample Deals – Mortgages For The Over 60s
How Age and Retirement Can Affect Your Mortgage
When it comes to securing a mortgage for over 60, many companies have very strict rules when it comes to the age limit of applicants. There are no regulations set forth by the Financial Conduct Authority surrounding the topic of age for mortgage applicants, so it is the individual mortgage companies who set up these guidelines in order to control the amount of risk they will be taking on.
More often than not, mortgage companies will not agree to a mortgage term that they believe will outlive the person applying for it.
The guidelines that mortgage companies use leave older individuals with very few options.
Without the ability to easily remortgage their home, many people are stuck continuing their initial mortgage terms and could mean continuing to deal with a variable rate monthly payment they can no longer afford.
Securing a new mortgage is just as frustrating – applicants looking for a new mortgage often have to provide a much larger deposit than other applicants and must have a higher income to afford payments.
Securing a mortgage for over 60s is possible?
Even though the roadblocks to securing a mortgage may seem impassable, it is possible for individuals over the age of 60 to secure a mortgage they desire with payments they can afford. There are a few ways that individuals can improve their chances of being approved for a mortgage.
Having a decent amount of money saved as a deposit is a great first step especially for those with a low loan to value or LTV. It is also crucial for the individual to be able to prove they have the ability to repay the loan – having documentation showing they are receiving pension payments can greatly improve your chances.
Mortgages for over 60’s options
With the bleak outlook on mortgages for older individuals, it may be hard to believe that they have options to choose from. Luckily, there are a number of different mortgage options that are available to those over the age of 60 and choosing the right offer will be determined by what the applicant needs and wants.
It is important to ask yourself some important questions when choosing a mortgage – what do you need, what do you want, what type of payments are you comfortable with, and how long do you wish to make payments. Here is a breakdown of some of the most common mortgage options.
Buy to Let Mortgages are traditionally used by landlords or property investors. Although these may seem like specialized mortgages, they can also be the perfect fit for older individuals. Some of the challenges associated with Buy to Let Mortgages is being able to provide a large deposit as well as being able to prove a stable, lucrative income. Having these two assets is a great step toward being able to qualify for this type of mortgage and lenders prefer them because of the much shorter payment terms.
Interest Only Mortgages are another option for older individuals, especially those who are still working but close to retirement. For this mortgage, the borrower will only pay the interest payments on the loan until it matures – lenders will try to line up the maturity of the loan with the client’s retirement date so they can use pension payments or retirement benefits to make their payments.
In the unfortunate circumstance that the borrower is unable to pay, he or she may be able to extend the terms of the mortgage.
Before your mortgage for over 60 application consider the following:
- 2018 Remortgage Industry Report
- Options For Pensioners 65-85
- Zero Hour Contract Finance
- Government Mortgage Schemes
- Leasehold Property Good Or Bad?
- Near Prime Or Sub-Prime Borrowing
- No Credit History Property Purchasing
- How To Get An Application Approved
- How To Repair Your Credit
- Credit Refinancing Post Divorce
- Remortgage Without The Risk
- Funding Lending Scheme Mortgages
Comparing Finance Options – Over 60 Mortgage
The first step in effectively comparing mortgage options is to determine what type of funding is needed and what repayment terms work best for the applicant’s budget. Once these factors have been identified, he or she can begin comparing options from different mortgage companies.
It is important to make sure similar plans are being compared – think “comparing apples to apples” – in order to make the most educated decision on what mortgage option will work best for your life and your budget.
When you have some adverse credit your mortgage are remortgage options are significantly reduced. However, its still possible to find a remortgage for bad credit at rates not a million miles away from the big high street banks and building societies. Even some of the big building societies can accept some bad credit.
Mortgage Alternatives for those Over 60
Although securing a mortgage may be possible for an individual over the age of 60, there are a number of reasons why doing so may not be feasible. For those individuals, there are a number of alternative options that can help increase cash flow.
The first of these options is for the individual to downsize his or her home to a smaller home or an apartment – selling the current property is a great way to free up funding and lessen monthly bills, ultimately helping to straighten out finances.
Another alternative option is for the applicant to release the equity in the current property. This process allows the homeowner to withdraw a sum of cash which can then be used to do renovations, add an addition, or pay off credit cards and other debt.
Although many people view this as a very expensive way to increase cash flow, it is important to keep in mind that this money can be paid back when the home is sold. This option helps individuals avoid applying for a mortgage or remortgage.
How easy is it to get an over 60 mortgage?
Mortgages for 60 plus individuals or couples are in many ways very similar to traditional mortgages. What the over 60 mortgage lender cares about is your ability to pay the mortgage in addition to your other monthly outgoings.
Because of the stability of typical sources of pensioners income like pensions and investments, lending to a pensioner can be very low risk. A pensioner is not like a working-age person that could lose their job or be sick and become unable to work.
Even buy to let mortgages for over 60s are very achievable as people who bought buy to let properties in their early 50s may have dropped off fixed or discounted rates, so they need funding for their rental properties.
Some mortgages for 60 year olds can have lower rates than people that have income but less than perfect credit.