Mortgages for over 70s

Mortgage options for older borrowers can feel limited. This can be the case whether you’re looking to buy a new property or remortgage your current home.

Luckily, Saga Mortgages offers a range of mortgage solutions for over 70s. Partnering with digital brokers Tembo, we’re here to help people achieve property goals in later life.

This article explores mortgage products for over 70s, as well as lender restrictions, eligibility criteria and affordability. Before we continue, remember that a mortgage is a loan secured against your home. If you don’t repay on time, you could lose your home.

Can over 70s get a mortgage?

Yes. If you’re over the age of 70, you can apply for a range of mortgage products. But you will need to meet the lender’s eligibility criteria and prove you can afford the repayments.

As life expectancy goes up, mortgage lenders are becoming more flexible with their age limits. These limits could apply to your age when you take out a mortgage or finish repaying it.

For example, you might be considering a standard repayment mortgage. If you’re 70 and the lender's repayment age limit is 85, you could apply for a 15-year mortgage term.

However, some lenders don't have upper age limits, so you could apply for a mortgage into your 90s. But the mortgage term is likely to be far shorter and the monthly costs far higher.

How to improve your chances of getting a mortgage

Show proof of income

One of the main factors that lenders will assess is your ability to repay the mortgage. People with a job can show proof of their work income. But if you’re retired and no longer earn a salary, you will need to provide alternative proof of affordability. This could be:

• A pension
• An investment
• Revenue from a property you rent out.

Improve credit score

Other factors that could boost your chances are having a good credit score and showing that you’ve borrowed responsibly before.

You can check your credit score with companies such as ClearScore or Experian. They can also point out issues that might be affecting your score, such as not being on the electoral register. Taking certain steps to improve your score could help with your mortgage application.

Widen your search

The more lenders you explore, the more chance you’ll have of finding a mortgage that meets your needs. That’s because some lenders offer more flexibility, and some have a niche for older borrowers.

With Saga Mortgages, you can access deals from high-street lenders like HSBC, Natwest, Halifax and Barclays. But also smaller specialist lenders such as Metro Bank, Livemore, Skipton Building Society, Kensington and Generation Home.

Complete a fact find in a few minutes to see which mortgage deals are available to you. And if you want to proceed, your personal advisor will be on hand every step of the way. 

How much can over 70s borrow?

There are lots of factors used to determine the amount you can borrow, such as your:

• Age
• Income
• Outgoings
• Credit history
• Personal circumstances
• Property type.

As a rule of thumb, you could borrow up to four and a half times your income for a standard repayment mortgage. Some lenders will consider five and a half times, but that comes with stricter criteria on deposit size and credit score.

Due to your age, it's likely you will be offered a shorter loan term, such as 10 to 15 years. This means your monthly repayments will be higher. 

Mortgage product options for over 70s

Depending on whether you’re looking to buy, remortgage or release some equity, there’s a range of mortgage products for over 70s. Remember that a mortgage is a loan secured against your home. If you don't keep up with payments, you could lose your home.

Through Saga Money, you could explore the following options:

Standard repayment mortgage

This option could work if you’re looking to remortgage or buy a new home. If approved, you must repay part of the loan and some interest each month. Therefore, you will need to show proof that you can afford the monthly payments.

If you’re remortgaging, we could help you find a deal up to six months before your current deal ends. If the interest rates fall in that time, you can apply again at no extra charge. And if the rates go up, we'll keep your lower rate safely locked in.

Retirement Interest Only mortgage

This option could work if you want to reduce your monthly payment and free up some cash. Also known as a RIO mortgage, it allows you to take out a loan against the value of your property.
You pay back the interest every month, but not the capital of the loan. The loan is typically repaid when your home is sold. This tends to be when you pass away or go into long-term care.

Family Buy to Let mortgage

If you want to rent part of your home to a child or grandchild while also living there, a family Buy to Let mortgage could work for you. If your loved one occupies less than 40% of the property, you can opt for a standard Buy to Let mortgage. But if they intend to occupy more than 40%, you will need a regulated family Buy to Let mortgage.

Other mortgage options

Through Saga Mortgages, you can discuss a range of other solutions such as downsizing, joint mortgages and guarantor mortgages. Register your details here and if you’re eligible, a friendly expert from Tembo will be happy to help.

If you want to unlock some tax-free cash from your home, you could also consider a lifetime mortgage from Saga Equity Release. Try our free lifetime mortgage calculator to see how much you could release.

Equity release will reduce the value of your estate and may affect your entitlement to means tested state benefits. That’s why it’s important to speak to an expert first.