Mortgage in Retirement

Mortgage in Retirement

Can I Get a Mortgage In Retirement?

Even if you have given up work, doesn’t mean you can no longer apply for a mortgage. So, yes, you can get a mortgage when retired. As with any mortgage, you will still be financially assessed to see if you’re eligible.

Some lenders will have their own terms for lending to an older borrower, for example, if you’re taking out a mortgage at the age of 65, your mortgage lending terms are likely to be when you’re 80.

This gives you 15 years’ worth of repayments, of which you have to prove this is doable. Alongside this, the majority of lenders that accept an older borrower, are more likely to come with fixed interest rates. This is due to a shorter repayment schedule, therefore the monthly payments will be higher.

Mortgage providers will have age brackets provided, to ensure you know what you could be eligible for.

Before you consider applying for a mortgage, it is always wise to get in touch with a mortgage broker. If you apply for a mortgage and it is denied, this could affect your chances of being successful.

By discussing with a broker, or financial advisor, you will be able to discuss what your options are. The main point of this is to be able to show that you can afford your repayments.

You should expect to show your bank statements and any proof of income. Whether this is a new part-time job or evidence that shows you are receiving a pension. If providing evidence is going to be a struggle, you may be accepted for a retirement interest-only mortgage instead.

This means you will just pay the interest and not the loan. The loan itself will be repaid once the property is sold if you go into residential care or pass away.

But the underlying message is yes, you can get a mortgage once you retire. Having a high credit score is a plus, with any type of lending and can increase your chances of being accepted.

There may be restrictions and tougher policies when it comes to getting a mortgage in later life, but it is doable with the right financial advice and support.