Mortgages for the Over 60s

Mortgages are normally offered to people with earned income. As a result, mortgages have long been available to people of certain age groups who were expected to be regularly employed for the whole term of the mortgage. Thus, when someone applied for a 25 year mortgage, the lender’s decision was mainly based on the borrower’s age and their ability to work until the end of the mortgage term.

However, now it’s not the case and people who have reached the age of retirement and need a mortgage can now heave a sigh of relief. In the current volatile economic environment where many potential borrowers have unusual circumstances and in many cases do not rely solely on earned income to repay the mortgage, lenders are becoming more flexible with the mortgage deals they offer. Besides, lenders have to take into consideration age discrimination legislation.

Due to these two factors mentioned above, an increasing number of lenders are now ready to offer mortgages to individuals over the age of 60. Gone are the days when people reaching retirement age could avail little or no mortgage at all.

Other Options Available
However, one should be aware of the fact that mortgage providers are taking a higher risk with borrowers who have approached the age of retirement, which is why most lenders expect to achieve a higher rate of return from these type of mortgages. Thus, despite the tough competition, mortgages for people over 60 cannot be called the cheapest on the market and it anyone considering taking out one should fully explore the other options available.

For instance, one might consider other type of mortgages that are designed for older consumers such as a lifetime mortgage or an equity release where the borrower is offered lump sums of money or regular payments.

One more alternative is a home owner loan that can be offered to borrowers of any age group.  As a rule, the interest charged on home loans is rather high, but overall, such loans might turn out to be more cost effective than over 60s mortgages.

Repaying a mortgage when you are over 60 can be rather difficult, but it is possible. A mortgage provider will approve your application give you money only if they think they will see a return on it. Each mortgage provider will base on different criteria before lending to retired people. To get the most competitive deal available it is worth consulting a financial adviser.
 


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