Extending Your Mortgage Term Beyond 60

Mortgages and refinancing might seem like a young person’s game, but remortgaging is now a popular choice for people in later life.

People over 50 years of age often want to access funds from the value of their homes without moving, perhaps to pay for home improvements, to gift a sum to a family member, or just to make retirement more comfortable.

This guide is here to help you get a clear idea of whether it’s possible to remortgage later in life, what the situation is with age limits, what the eligibility criteria is, what types of remortgages are available and how a specialist broker can help you.

What is the maximum age you can remortgage?

There are both lenders and brokers who specialise in helping people up to 80 and sometimes 90-years-old to access later life remortgages.

Most lenders are far more relaxed these days about strict age limits on remortgaging, and some don’t even have an upper age limit at all.

But, while we’re all living (and working) longer than ever, remortgage criteria and eligibility will still be hurdles to overcome – and they will be more stringent the older you are.

Remember, as with all restrictions in financing, everything is dependent on your unique situation, from your credit history to income to equity in your home.

Remortgaging if you’re over 50

If you’re in your fifties, chances are you will still have plenty of options from lots of lenders, as income often peaks at this time of life and you might have built up equity and investments.

Of course, your pending retirement will still come into the equation here, so some lenders might insist on your term lasting across 20 years instead of 25, and you’ll be expected to have a firm plan on how you will manage the repayments if you retire during that time.

Later down the line you might be asked for income expectations, such as pension forecasts, and expenditure statements. While you may come across some barriers, very few lenders have an age limit as low as 50-60.

Over 60

It gets more complex if you want to remortgage in your sixties, and you could be looking at a 10-15 year term. That said, if you meet or exceed eligibility requirements, you could have access to longer terms.

This is the decade in which retirement is usually imminent and therefore options may shrink, but they’re certainly not off the table.

Remortgaging in later life is increasingly more about affordability and less about age, so as long as pensions, investments or incomes can cover the payments, now and in the future, you may find remortgaging attainable. If you’re in your sixties and not yet retired, lenders will want to know how you intend to cover the payments when you do – and they may want proof of this, such as pension statements and projections.

Over 70 and beyond

There are fewer options for remortgaging when you’re in your seventies, eighties or nineties, however it’s not impossible. Whereas most lenders would prefer you to have paid the full balance of your loan by the time you retire, some don’t have any maximum age limits at all.

The age restrictions apply to the oldest person on the mortgage, and explanations may be required from some lenders of your financial intentions. An underwriter may assess your application before approval is given, and many later life applications are considered on an individual case-by-case approach.

Affordability and eligibility are obviously key factors.

The older you are, the more likely you are to need specialist advice from a broker to secure a later-life remortgage.

Other considerations for older applicants

• Most terms will only stretch as far as five years if you’re 75-80-years-old or over
• You must have a minimum expected income post-retirement
• You should expect restricted terms and additional conditions in general
• Owning your property outright (unencumbered) won’t alter the requirements
• Loan-to-value amount will be lower or only a maximum set loan amount offered

How many lenders will accept older remortgage applicants?

The table below offers a quick summary of the amount of approachable remortgage lenders available to you based on your age.

Keep in mind that a broker who specialises in later-life lending can increase the number available, as they often have access to exclusive deals…

How a broker can help seniors remortgage

Everyone has a unique set of financial circumstances, but remortgaging after you turn 50 or 60-years-old can be far more complex and restrictive. It can be easy to lose faith that the possibility even exists for you, however a good broker who specialises in later life remortgaging will take away the stress of searching for options on your own.

Brokers have access to the entire market and understand how lenders work. Meeting a professional broker when retired or approaching that milestone allows you access the support and guidance that could be vital in securing a remortgaging deal.

The right broker can help you determine whether you’re eligible and what you will need to gather for your application, saving you time and ultimately leaving you in a far better position.

Eligibility for a later life remortgage

As well as your age and employment status, getting access to decent deals will mainly depend on affordability. This criteria is much stricter the older you get, but eligibility rules range broadly from lender to lender.

Your individual situation comes into play here, which is why working with a broker is crucial, however here is a summary of the general requirements…

• Income: You must be able to cover the repayments with your income. If you work, your loan could be capped at 4.5x your annual salary, or up to 5x or 6x in some cases. Other incomes highlighted below also count.
• Credit history: If you’re high risk, you may come up against more obstacles. How much credit you’ve applied for in the past, your financial reliability and history of debt will all come into play. However, there is no credit score pass or fail rate for lenders. Your file will be considered on an individual basis.
• Equity in your home: The more equity you already have in your home before remortgaging, the better position you’ll be in for securing the best deals. Many maximum loan-to-value ratios are about 50-55%, some have no minimum equity requirements at all.
• Pensions: If the only income source, private and state pensions must cover your repayments.
• Assets: Endowments, savings, stocks and shares, and other investments all add to your application and proof of affordability.
• Employment status: For example, self-employment can prove trickier in the eligibility process, but as long as you have sufficient evidence of a reliable income, earnings and tax returns, upcoming work and salary/dividend payments, your criteria should be the same.
• Property type: If you don’t own a ‘standard’ home, this could affect your application as a specialist lender might be called for to get the best rates or even be approved at all.
• Other outgoings: How much you spend could be looked at, as lenders will assess your debt-to-income ratio. There is not a strict percentage that this needs to be, but spending too much each month on other financial commitments might affect the amount you can borrow.

Types of remortgages available

Beyond the standard remortgaging packages, here are a few that might be open you to if you’re an older applicant:

Retirement interest only

With a retirement interest-only mortgage, you only pay off the interest for the duration of the term, unless you choose to make optional capital repayments. You pay the capital at the end, which might be either when you sell up, pass away or enter long-term care.

While this keeps monthly payments down, you must be able to settle the debt in full once the term ends if you wish to stay in your home.

Guarantor mortgage

If you want to boost your options and you have someone in your life who will act as security for your remortgage, this is worth looking at. In effect they agree to back up your loan, meaning they will be liable to step in if you miss any payments. They must be willing to promise their own home or savings as security.

Buy-to-let remortgages

If you want to remortgage to let out your home, buy a holiday property or an investment, there are options for older applicants, but it’s worth noting that some lenders don’t offer them at all, while some only offer buy-to-let for seniors. The best way to find the right lender for this is through a mortgage broker.

Alternatives to remortgaging in later life

What else can you do other than remortgage? Here are a few of the most popular options…

Lifetime mortgage

With a lifetime mortgage, you don’t pay monthly repayments on this. Instead, you get equity released from your property and then the debt must be settled once you die or move into long-term care, usually by selling up.

The loan is borrowed against your home and it’s most beneficial if you find a deal with fixed interest rates and a no-negative-equity guarantee. You will remain your property’s outright owner.

Home reversion

Another method of releasing equity, this plan involves selling some or all of your home to a provider. The money you get is tax-free and you may remain in your home, however it’s unlikely you will get the market value for your home.

Downsizing

Only you know whether this is a viable option for your situation, however it’s worth considering if you can do it as all the benefits are there: home ownership, better rates, more equity and lower repayments.

Get the support and advice about later life remortgaging from an expert

It can be stressful and overwhelming to research the mortgage market these days. The mortgage brokers we work with are trusted, friendly and experienced sources who would be delighted to help you find the best deal out there.

They’re used to all kinds of hurdles homeowners face and understand how best to approach them.

We listen to your unique set of circumstances and are then able to match you with the ideal broker who specialises in later life and pension-age remortgages.

Our service is guaranteed to be bespoke and tailored to you, because there’s no one-size-fits-all solution.

Call us today on 0808 189 0463 or make an enquiry online to get matched with the right remortgage broker for a free no-obligation chat.