Is it possible to get a mortgage when you are in your 50's?
Tags: Older borrowers, Remortgages, Residential mortgages
Quick Summary
Yes, it is possible. Getting a mortgage in your 50s is often easier than many people expect, as more lenders now offer later-life borrowing. The article says lenders focus on affordability, income, credit history, existing commitments, pension plans, and how the mortgage will be repaid over time. Older borrowers may still qualify for high-income multiples or interest-only deals, particularly with strong earnings or a larger deposit. However, maximum age limits at the end of the term vary between lenders. It also highlights the growing demand from adult children helping parents as guarantors. The overall message is that preparation, affordability, and expert advice matter most.
Getting a mortgage is often more straightforward than many over 50’s think, especially now that so many banks and building societies have eased their maximum age policies and actively try to attract older borrowers.
Just like anyone applying for a mortgage, the lenders will want to see a clear plan for how the mortgage will remain affordable. They will want to know how much you earn, your credit history and your ongoing credit commitments. Depending on the lender and the mortgage term taken, questions about retirement plans and pensions may come up. Having strong PAYE, self-employed or expected pension income, low debts, and a decent deposit can make a big difference.
Higher income multiples and interest-only of the over 50's
It is still possible to get 5.5- and 6-times-salary mortgages if you are an older borrower, and interest-only mortgages to reduce your monthly costs, provided you either earn enough to qualify or have a large enough deposit. If you do opt for interest-only, the lender will probably accept the sale of your property as a repayment strategy, but you need a plan to repay the mortgage. If you don’t, you could be in for real trouble in 20 years' time when the lender asks for the outstanding balance to be repaid.
Lenders like Clydesdale Bank have a maximum age at the end of the mortgage term of 75 years + 364 days. The minimum mortgage term is five years. For Interest-only mortgages where downsizing is being used as the repayment vehicle, the maximum age at the end of the mortgage term is the lower of 70 and 364 days or the customer's declared retirement age.
Other lenders like Barclays are pretty generous as the maximum age at the end of the mortgage term cannot exceed the oldest applicant's 80th birthday. Many building societies will lend to people in their 80’s or 90’s providing their have a pension or they can demonstrate how the mortgage will be affordable.
Anthony Emmerson, director of Trinity Financial, says: "Over 50’s have always been concerned when it comes to mortgages, as we get closer to our expected retirement ages lenders are presumed to get more restrictive. This is not now always the case as lenders have become more comfortable with older applicants and have allowed applicants to be assessed to slightly older ages to help facilitate better affordability.
"In the past most lenders have assessed affordability to age 70 max, but now that is being pushing that out to 75 and possibly longer with certain lenders. This allows applicants to repay the debt over a longer time horizon, which makes it more affordable (it also means we are expected to remain in employment longer as well). Some providers are willing to look at your investments and pensions rather than just your income to help with affordability assessments."
More adult children being guarantors for their parents’ mortgages
We are getting more enquiries from adult children who want to be guarantors for their parents’ mortgages, to help them get out of rented accommodation or to pay off an outstanding mortgage balance when their term ends.
Having a clear credit history is important if you want to get a decent mortgage rate from a big lender and not have to pay significantly more through a specialist provider. Keep an eye on your credit report and try not to apply for finance or apply for credit cards or loans in the months or even years before you want to apply for a mortgage.
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The information contained within was correct at the time of publication but is subject to change.
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