Older Borrower – Is age just a number when it comes to getting a mortgage?

Older borrower face significant challenges in accessing the mortgage market – yes or no?

People are living longer than ever before, and often buying property much later in life than previous generations. There are any number of reasons why someone could be seeking a mortgage over the age of 50.

With an ageing population, the UK will see a rising demand for mortgages from older borrowers. The Office for National Statistics (ONS) predicts that by 2050, one in four people in the UK will be aged 65 and over.

An older borrower is often in a stronger financial position than the younger age group. They are further into their career and often earn more than younger borrowers. Their children may have left home, and they may have already come into a family inheritance. But over the last few years, older borrowers have faced significant challenges in accessing the mortgage market.

In 2014, legislation known as the Mortgage Market Review (MMR) led to many banks and building societies refusing to lend to existing mortgage holders where the term would take the borrower over the age of 65.

More emphasis was placed on affordability, which meant lenders must now look closely at the income and outgoings of mortgage applicants. This leaves older borrowers in their fifties and above with a reduced choice of mortgage products in the UK.

This, plus changes to state pension and retirement laws, including the abolishment of the compulsory retirement age, means the choices for borrowing later in life are limited. Here’s why, and what you can do in this situation.

IS IT HARDER TO GET A MORTGAGE AS AN OLDER BORROWER?

Unfortunately, yes, it is. All mortgage providers have a maximum age for their products. This can be your age at the time of application or your age at the end of the mortgage term.

If a mortgage provider has a maximum age of 70 at the end of the mortgage term, as many do, you will find that they have fewer mortgages available to you after you turn 45, since you’ll no longer be eligible for 25-year mortgages (the most common length term).

The number of mortgages available to you will decrease as you get older.

[click_to_tweet tweet=”“Once you’re approaching retirement age, you’ll have more work to do to convince a mortgage provider that you’ll have sufficient income to cover your mortgage and living expenses throughout the full term of the mortgage.”” quote=”“Once you’re approaching retirement age, you’ll have more work to do to convince a mortgage provider that you’ll have sufficient income to cover your mortgage and living expenses throughout the full term of the mortgage.””]

IS THIS A COMMON PROBLEM?

Increasingly so. These days, many people move home in later life. You might be relocating to enjoy your retirement, downsizing after your children have flown the nest, or moving to be closer to family. No matter what the reason, you will be looking for a mortgage from a smaller pool of options.

Even if you have no plans to move, you could be affected if you need to remortgage your current home, for example, at the end of your fixed rate mortgage period.

How difficult it is for you to get a mortgage will depend on your age at the time of application, how much you want to borrow, and the period you want to repay over.

WHY IS IT HARDER TO GET A MORTGAGE AS AN OLDER BORROWER?

When lending you money, mortgage providers want to be sure that they’ll get that money back. And, they have a responsibility as lenders to ensure that you won’t be left with debt you can’t pay. According to the Mortgage Market Review (MMR) in 2014, they are required to anticipate foreseeable changes in your circumstances over the term of the mortgage, particularly regarding retirement and your expected retirement income.

Once you’re approaching retirement age, you’ll have more work to do to convince a mortgage provider that you’ll have sufficient income to cover your mortgage and living expenses throughout the full term of the mortgage.

HOW CAN YOU FIND A MORTGAGE AS AN OLDER BORROWER?

This is partly a matter of persistence, as there are mortgages available for older borrowers if you look hard enough. So whether you are looking for a mortgage or a remortgage here are a few tips if you are an older borrower:

  1. Shop around. Different mortgage providers have different maximum ages, so others might still accept you even if your first choice won’t.
  2. Speak to a broker. They will sometimes have access to more mortgages than you can find yourself, and can do the time- consuming work of checking maximum ages for you.
  3. Look for shorter-term mortgages, for example, a 10-year mortgage if you’re over 55. That way you can plan to repay it before you retire (though your repayments will be higher than with longer mortgages).
  4. Inform your mortgage provider if you have plans to delay retirement beyond the full term of the mortgage. They will need to assess the feasibility of your plans.
  5. Provide evidence of your retirement income. In some cases, you might have plenty of pension savings or guaranteed pension income, which will be sufficient to convince your mortgage provider that you can afford the repayments.

WHAT ARE YOUR OTHER OPTIONS AS AN OLDER BORROWER?

If you’re still unable to find a suitable mortgage, you can look into other options, such as:

  • Retirement interest-only mortgages, for which you only pay the interest on your loan, and it is repaid in full after you die, move into residential care or sell the property.
  • Equity release, which can provide a cash lump sum while you continue to live in your current home, which again is repaid after you die, move into residential care or sell the property.

These options are only available after the age of 55 and if you are considering either of these, we have a Later Life Lending Specialist Team (and a website dedicated to Specialist Mortgages) who focus purely on supporting these needs.

So if you are an older borrower, or someone who is wondering if you are ever too old to apply for a mortgage loan? The mortgage process focuses on your ability to make repayments as you get older. Chances are, if your profession enables you to work later on in life you may be okay, but if age is likely to stop you working, this may not be the case. Either way, understanding what lenders will consider can help you be prepared and know what to expect. So instead of worrying, check out our Later Life Lending pages or book a call and let us help you identify what is right for you.

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At Yes Mortgage Services, we offer a comprehensive range of products from across the market.

Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.

Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.

We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.

Yes Mortgage Services

Contact Us

YES Mortgage Services Limited
The Old Barn
Brooklands Farm
Mannington
Wimborne
BH21 7JU

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Contacts
0800 612 5596
[email protected]

We don’t charge a broker fee

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Our friendly mortgage advisors are here to help. We have access to a comprehensive panel of lenders to ensure we research the most suitable mortgage solution for your needs. And the best bit? We don`t charge a broker fee!⁣

Tap the link in our bio to learn more, or call us on 0800 612 5596 to arrange a chat. ⁣

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Buying your first home can feel a little daunting and maybe even a bit scary at times. ⁣

But we`re here to guide you every step of the way so you can feel comfortable and confident throughout the entire process 🙌⁣

Our free expert advice covers everything from saving for your deposit, getting your credit score healthy and your finances ready, right through to choosing the right building surveys and solicitors.⁣

We`ll cut through the jargon, talk through all of your questions (there`s no such thing as a silly question in our minds), and guide you through finding the most suitable mortgage for your circumstances 🏡⁣

The best bit is we don`t charge a broker fee! - send us a message or give us a call on 0800 612 5596.⁣

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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

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Our amazing team of experts are always on hand to find the right mortgage solution for you and to answer any questions you might have. Send us a message, or call us on 0800 612 5596.⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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Our amazing team of experts are always on hand to find the right mortgage solution for you and to answer any questions you might have. Send us a message, or call us on 0800 612 5596.⁣

...⁣

Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

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#mortgageadvisor #nobrokerfee #dorset #mortgagesmadesimple #dorsetbusiness #ukpropertymarket
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More and more investors are buying properties within a Limited Company to keep things tax efficient. ⁣
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More and more investors are buying properties within a Limited Company to keep things tax efficient. ⁣

But when it comes to refinancing or purchasing your new investment property, the process of getting a mortgage can feel challenging.⁣

Not anymore!⁣

Our Specialist Mortgage Advisors know which Mortgage Lenders are used to working with Limited Company Buy to Let portfolios. They`ll find you the most suitable deal and save you time and money by managing your mortgage application from start to finish. ⁣

Visit our website to learn more (🔗 in bio)⁣

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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

Before pursuing Limited Company Buy To Let we recommend you seek advice from a tax expert⁣

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We believe in providing quality financial advice to everyone, regardless of their financial status. ⁣
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That's why we don't charge a broker fee 🤩⁣
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We'll look after you for the lifetime of your mortgage/home ownership, ensuring you never pay more than you should on your loan. Whether you're remortgaging, moving home, or making any subsequent property purchase, we've got you covered.⁣
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Visit our website (🔗 in bio) to learn more.⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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We believe in providing quality financial advice to everyone, regardless of their financial status. ⁣

That`s why we don`t charge a broker fee 🤩⁣

We`ll look after you for the lifetime of your mortgage/home ownership, ensuring you never pay more than you should on your loan. Whether you`re remortgaging, moving home, or making any subsequent property purchase, we`ve got you covered.⁣

Visit our website (🔗 in bio) to learn more.⁣

...⁣


Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#mortgagetips #mortgageexpert #devonproperty #bournemouthbusiness #southcoastuk #mortgagebroker #mortgageuk #ringwood #hampshireuk #mortgageadviser
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Being self-employed has its perks, but when it comes to getting a mortgage, things can get a little tricky. But you don't have to navigate this process alone.⁣
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We have access to a wide range of lenders and a deep understanding of what each one looks for when it comes to self-employed mortgages. Meaning we can find the most appropriate lender for your circumstances and needs!⁣
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And the best bit? We don't charge a broker fee 🤩⁣
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If you'd like to chat with one of our advisors about self-employed mortgages give us a call on 0800 612 5596 or send us a DM⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage.  Yes Mortgage Services Limited do not charge a broker fee.⁣
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#selfemployedmortgage #selfemployedmortgages #selfemployed #dorsetbusiness #bournemouthbusiness

Being self-employed has its perks, but when it comes to getting a mortgage, things can get a little tricky. But you don`t have to navigate this process alone.⁣

We have access to a wide range of lenders and a deep understanding of what each one looks for when it comes to self-employed mortgages. Meaning we can find the most appropriate lender for your circumstances and needs!⁣

And the best bit? We don`t charge a broker fee 🤩⁣

If you`d like to chat with one of our advisors about self-employed mortgages give us a call on 0800 612 5596 or send us a DM⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

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#selfemployedmortgage #selfemployedmortgages #selfemployed #dorsetbusiness #bournemouthbusiness
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A JSPB mortgage enables you to accept the financial support of your family while retaining a sense of independence through sole ownership of your property.⁣
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If you'd like to chat with one of our advisors about Joint Borrower Sole Proprietor Mortgages or buying your first home, give us a call on 0800 612 5596 or send us a DM⁣
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Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
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...⁣
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#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips #JSPBmortgage

A JSPB mortgage enables you to accept the financial support of your family while retaining a sense of independence through sole ownership of your property.⁣

If you`d like to chat with one of our advisors about Joint Borrower Sole Proprietor Mortgages or buying your first home, give us a call on 0800 612 5596 or send us a DM⁣

...⁣


Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#firsttimebuyeruk #firstimehomebuyers #propertyladder #firsttimehomeowners #firsttimebuyertips #JSPBmortgage
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Life throws curveballs, don't let a leaky roof be one! Building insurance provides peace of mind knowing your home's structure is covered. Talk to Kelly, our insurance advisor, to find the right coverage for your mortgage.⁣
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Get in touch on 0800 612 5596 or tap the link in our bio.⁣
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#buildingsinsurance #protectyourhome #dorsetlife #insurancebrokers #insuranceadvisor #dorsetbusinessowners

Life throws curveballs, don`t let a leaky roof be one! Building insurance provides peace of mind knowing your home`s structure is covered. Talk to Kelly, our insurance advisor, to find the right coverage for your mortgage.⁣

Get in touch on 0800 612 5596 or tap the link in our bio.⁣

...⁣

#buildingsinsurance #protectyourhome #dorsetlife #insurancebrokers #insuranceadvisor #dorsetbusinessowners
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Connor joined our team back in July 2017!  He's lived all around the Southwest, from Cornwall to Bristol, and now he's found his sweet spot in Wellington, Somerset—right between the two!⁣
⁣
When he's not crunching numbers, you'll find him whipping up some delicious dishes, hosting get-togethers with friends and family or enjoying the delights at his local cider farm🍺🌿⁣
⁣
All of our mortgage advisors (Connor included) are ready to help you whether you're looking to remortgage, buy your first home, or upgrade to a new one. The best bit is we don't charge a broker fee! Get in touch on 0800 612 5596 or send us a DM⁣
⁣
⁣
...⁣
⁣
Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣
⁣
...⁣
⁣
#ukmortgage #mortgagesuk #wellingtonsomerset  #mortgageexperts #westcountry

Connor joined our team back in July 2017! He`s lived all around the Southwest, from Cornwall to Bristol, and now he`s found his sweet spot in Wellington, Somerset—right between the two!⁣

When he`s not crunching numbers, you`ll find him whipping up some delicious dishes, hosting get-togethers with friends and family or enjoying the delights at his local cider farm🍺🌿⁣

All of our mortgage advisors (Connor included) are ready to help you whether you`re looking to remortgage, buy your first home, or upgrade to a new one. The best bit is we don`t charge a broker fee! Get in touch on 0800 612 5596 or send us a DM⁣


...⁣

Your property may be repossessed if you do not keep up repayments on your mortgage. Yes Mortgage Services Limited do not charge a broker fee.⁣

...⁣

#ukmortgage #mortgagesuk #wellingtonsomerset #mortgageexperts #westcountry
...

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We're flying the flag for Somerset! ⁣
⁣
With a team spread across the Southwest, we're proudly celebrating #SomersetDay and sending a special shoutout to our amazing mortgage advisor, Connor, who's lucky enough to live there.⁣
⁣
Let's have a bit of fun - how many of these places can you name? Share your score in the comments 👇⁣
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⁣
...⁣
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#somersetlife #loveforsomerset #visitsomerset #somerset #somersetday

We`re flying the flag for Somerset! ⁣

With a team spread across the Southwest, we`re proudly celebrating #SomersetDay and sending a special shoutout to our amazing mortgage advisor, Connor, who`s lucky enough to live there.⁣

Let`s have a bit of fun - how many of these places can you name? Share your score in the comments 👇⁣


...⁣

#somersetlife #loveforsomerset #visitsomerset #somerset #somersetday
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