Buying a new home or moving house can be a very exciting time in your life. There are a variety of reasons to do so, from downgrading to a smaller property following a separation or a divorce, finding a larger property with a bigger kitchen and more bedrooms for a growing family or simply moving closer to family and friends.
Best mortgages for over 60s isn’t necessarily any more difficult than when you’re younger, but there are some important considerations to bear in mind, especially if you’re already retired. The mortgage market is increasingly challenging for all borrowers, and lenders will be looking closely at your predicted income in retirement to make sure you can afford to repay the loan.
Age and Equity Release: Understanding the Minimum Age Requirement for Homeowners
This may mean more stringent affordability checks, or a requirement to provide evidence of other sources of income that can support your mortgage repayments. This could include state and workplace pensions, investment income, property, savings and any income from work you’ve taken on in retirement.
There are a number of specialist mortgage options available for homeowners over 60, including retirement interest-only and equity release mortgages. These can be useful for those who need to find a way to release equity from their home, but they should not be used as a substitute for financial planning and advice. The best way to assess your mortgage options is to speak with a qualified mortgage broker who can help you to understand what the different types of mortgage are available.