As an older borrower, it can feel that your mortgage options are more limited if you come up against lender’s age restrictions. Luckily, there are products out there designed for those in later years. In this article, Saga Mortgages will run through 5 later life mortgages offered in the UK for those aged 60 or over.
This list was created based on the expert opinion of the mortgage brokerage team behind Saga Mortgages, Tembo, and is based on product availability and their partner list.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
1. Livemore
Livemore is a mortgage lender that specialises in later life mortgages, specifically for borrowers from 50 to 90 and over. Their Retirement Interest-Only mortgage is eligible for borrowers with LTVs up to 75%. They also accept multiple types of income sources, such as pensions, rental yield, salary and self-employed earnings as well as overseas income.
2. Leeds Building Society
Leeds offers a Retirement Interest-Only mortgage that accepts borrowers as young as 50. The maximum loan-to-value (LTV) is slightly lower than Livemore at minimum 55%, but they don’t have a minimum equity requirement. They also allow you to demonstrate lifetime affordability through assessing both your current and future income.
3. Family Building Society
Family Building Society specialise in helping buyers of any generation get on the ladder, from first time buyers to the last time buyer. They offer a Standard Repayment Mortgage that accepts applicants aged up to 95 years old, making it a worthwhile option for older borrowers looking for alternatives to retirement mortgages.
4. Hodge
If you have a Retirement Interest-Only, 50+ or Holiday Let mortgage with Hodge, you can benefit from their Early Repayment Promise. This allows you to repay Hodge the full mortgage balance in full if you sell your home without incurring any early repayment charge, even in your fixed rate period.
So whether you’re selling up to downsize, or want to dip your toe in a holiday let, then change your mind, you won’t be penalised!
5. Newbury
Newbury’s Retirement Interest-Only 5 year discount mortgage is not only a competitively priced product, but also is a variable rate. Variable rate mortgages tend to offer lower rates than fixed rate deals, as with fixed rates you are paying a premium for knowing exactly what your rate will be each month. For those more comfortable with the repayments changing from month to month, Newbury’s variable product is worth considering.
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