Is it possible after state retirement or working retirement?

If you are retired or approaching retirement, you may be wondering if you can get a mortgage. As long as you can prove that you can cover the monthly repayments, then there will be mortgages available for pensioners. Both after state retirement and working retirement.

Reasons for pensioners needing a mortgage or remortgage

Even when you are retired, there are still reasons why you might want or need to take out either a new mortgage or remortgage including:

  • To downsize to a property with fewer stairs or move to a different area.
  • Adapt or enlarge your existing home to meet your future needs.
  • Release equity from your home to give you additional retirement income.
  • If your interest-only mortgage period has come to an end you may need to remortgage to pay off any outstanding balance.

Is there a maximum age limit for mortgages?

Some lenders do set maximum age limits, but there is no maximum age rule for applying for a mortgage. Lenders are generally more open-minded in recent years, considering that people are now working and living longer, but some still cap as low as State Retirement age.

High-street mortgage providers tend to offer lower interest rates, but they may not offer as much flexibility at cap at around 75 and some 80. Specialist lenders and building societies can offer more flexible lending with some having no max age limit at all. But beware of higher interest rates.

Our expert knowledge and flexibility will ensure that we can find the best deal after retirement and for those looking to remortgage or even purchase. We will work in your best interest to find the right mortgage with rates that suit your budget.

What type of mortgages are available for pensioners?

Certain mortgages are aimed directly at older people. Retirement interest only mortgages work in a similar way to standard interest only mortgages. You only pay the interest each month and then you repay the outstanding balance once you die, go into long-term care or sell the house.

Lifetime mortgages are a type of equity release that let you borrow a lump sum secured against your home. Again, you repay when you die, sell the house or move into your long-term care. You pay interest on the amount you borrow, which will either compound over time to a lump sum you pay at the end, or you may be able to pay it off as you go.

Standard mortgages are still an option subject to affordability.

Read our Top tips to get the best deal on your mortgage blog which includes practical steps to owning your forever home.

Is it simple for a pensioner to get a mortgage?

Generally, the short answer to this question is no. Depending on the type of mortgage you are applying for, lenders can still want proof that you have a steady income to meet the repayments. This can be hard to substantiate if you are a pensioner or approaching retirement – but it is still possible. Some options are not linked to your income however and this is why you should speak to a qualified and experienced mortgage broker.

You will need strong evidence that your investments and pension income will be sufficient to make the repayments. Lenders will also want to know that you have a good credit history, so always check this before you start the application process to see if there are any areas that can be improved.

Having more than one source of income – investments, for example, may make it more likely you’ll be accepted for a mortgage.

What else do I need to know about how to get a mortgage after retirement?

Firstly, get together all of the details on your monthly income and other finances. Get a statement from your annuity or pension provider to prove your projected long-term income.

Avoid applying for multiple products as every application will show on your credit history and could affect your credit score. As your mortgage broker, we would take you through all of the application steps to help ensure your application is successful and that we recommend the right scheme for your needs.

With the right advice and support from a mortgage broker, with experience in mortgages for older borrowers, getting a mortgage can be achievable and stress free.

Getting the right mortgage for you

Being pension age does not have to be a barrier to owning a home. Whether alone or with a partner, it’s never too late to start speaking to a Mortgage Adviser. We are a completely independent Whole of Market mortgage broker, abiding to a duty of care, offering a choice of around 100 lenders and up to 25,000 different mortgage schemes. Let us help you make your pension count towards your future.

For more information about any of our services, including how to get a mortgage after retirement, please do not hesitate to get in touch by calling us on 0203 3939 222.

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Hannah D
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Jessica Cohen
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