How to improve your chances of getting a mortgage in later life

There are plenty of things you can do to improve your chances of getting a mortgage in later life, but there may be some differences based on the type of mortgage you’re looking to get. Whether you’re looking for a standard mortgage, a retirement interest-only mortgage, or a lifetime mortgage, we’ve got you covered:

Is it hard to get a mortgage later in life? 

Lenders may have some concerns about your ability to repay the loan over a longer time, but there are still plenty of options available to you and lenders are increasing their age caps across the board. 

They recognise the need for specialised products and services for older borrowers, as equity release might not be the right choice for everyone. Because of this, your mortgage options have greatly improved over the last few years:

What are your mortgage options for a later life mortgage?

Depending on your circumstances, there may be a variety of options available to you. In some cases, only one or two will suit, but this is where your expert equity release adviser will advise and help outline your options. These could include: 

• Standard residential mortgages

• Retirement interest-only mortgage

• Lifetime mortgage

Steps to improve your mortgage chances

For both standard residential mortgages and retirement interest-only mortgages, you’ll want to ensure that your credit score is good, you have a stable source of income, and a clearly outlined repayment plan in place.

With lifetime mortgages, your credit score and income don’t have an impact on your chances, as lenders will look more at your property than your financial situation. Your property must have a certain value, be in generally good condition, and you must have little to no outstanding balance on your mortgage. 

For expert advice about improving your chances of getting a mortgage in later life, speak to a specialist equity release adviser today.

Extra considerations for standard residential mortgages

Standard residential mortgages aren’t that different for older borrowers, as they still take into account your affordability, credit score, and overall ability to repay the loan. Age limits aren’t that much of a concern anymore either, as many lenders have either increased or removed their age caps. 

That being said, because your retirement income may have an impact on your affordability, lenders will need to take this into account. 

If you’re unsure whether you could get a standard repayment mortgage, you could look into options such as older persons shared ownership, which is available for borrowers over the age of 55. This will only be a viable option for you if you’re fine to move, as only specific properties are eligible for this.  

Proving your affordability in retirement

To prove your affordability, lenders will need to see evidence of your retirement income. For general workplace pensions, you will provide a pension forecast or annuity statement, as well as a statement to support your State Pension. 

If you are currently employed, but considering retiring soon, you may have to show evidence of your current income and what you’ll have available when you’re retired. 

If you have any windfalls coming from inheritance or investments, let your lender know if you plan to use this to form part of your repayment vehicle.

Advice to improve your chances of getting a mortgage in later life

As with any mortgage, lenders want to make sure that you’re financially stable enough to afford the repayments. With lifetime mortgages, this is not as much of a concern, but it still needs to be the right fit. 

If you’re unsure of where you stand, speak to an adviser today to get a sense of your affordability and chances of getting a mortgage, especially if you’re over the age of 50. It’s certainly not impossible, but advice is important. An expert adviser can make sure you’re getting the right deal for you, and choosing an option that suits your financial goals and situation. 

Talk to us today for an initial fee-free consultation and let's work together to find a path that works for you.