It may be more difficult to attain a mortgage as you get older but it is by no means impossible and there are plenty of lenders out there ready to help. Visit our preferred, fee-free, online mortgage broker partner’s, Mojo Mortgages, by clicking on the compare buttons on this page to compare all mortgages for over 60s from the UK’s biggest lenders as well as check your eligibility.
What is a mortgage for over 60s?
Most lenders set strict age limitations on their mortgages to ensure that you will be under a certain age by the time your payments are made. But what if you want to buy a new home and are over the age of 60? Fortunately there are still plenty of mortgage offers available – from the big lenders or from more alternative providers.
If you are over 60 and want to buy a new home and can’t afford it outright, you may find it useful to compare mortgages online to see what offers are available to you. Searching for a mortgage when over 60 will be slightly different to a younger applicant.
Mortgage providers will take a closer look at your credit history and will probably require a much larger deposit upfront, as well as larger monthly payments in order to pay back the mortgage within a shorter time frame, they may also take into account your health and some require specific health insurance policies to coincide with their mortgage offers.
Are there advantages to mortgages for over 60s?
Compared to first time buyer mortgages where buyers are typically between the age of 25-35, those over 60 will have a had a longer time to save a larger deposit, which lenders will require for a later life mortgage. Typically speaking, the bigger the deposit you have saved the lower the interest rate that you will have to pay each month.
Those over 60 have also had a much longer time to establish a substantial credit history making it easier for lenders to see how smart you are with your spending.
Are there any disadvantaged to mortgages for over 60s?
It is evidently more difficult to secure a mortgage offer when over the age of 60 as most lenders set age limitations on the majority of their mortgages. Some will have restrictions set in place that prevent you from taking out a mortgage if you are over a certain age, with restrictions varying between lenders from 70-85 years old.
Other lenders have a strict policy that prevents people from taking out a mortgage if they will be over a certain age at the end of the term. These vary too, but are generally in the region of between 75-95 years old.
Any offer you can secure for a mortgage for over 60s will expect to be paid back over a shorter period of time as a thirty year mortgage will probably be out of the question for most people over the age of 60. Therefore lenders will require a larger deposit and monthly payments tend to increase, due to the mortgage being over a shorter period.
What mortgages for over 60s are available?
There may be less of them but there are still fixed, tracker and standard variable rate mortgages available for over 60s.
Fixed Rate mortgages are the most common mortgage choice; they require a deposit followed by fixed monthly payments where your interest rate won’t change even if your lender decides to change their own interest rates in the meantime.
Standard Variable Rate (SVR) mortgages will have a fluctuating interest rate set by your lender. This means you could end up paying less each month than you would on a fixed rate mortgage should interest rates fall. But you could also end up paying much more should those interest rates climb.
Tracker mortgages are also available. With this type of mortgage your interest rates change accordingly, usually in line with the Bank of England’s base rate changes. As with an SVR mortgage these rates could rise or fall meaning you could end up paying more or less than you would on a fixed rate each month.
Compare mortgages for over 60s
If you are over the age of 60 and are looking to secure a mortgage on a new home, make sure you click the compare button below to compare rates and check your eligibility using a fee-free mortgage broker.