Remortgages for Over 60s: Your Options at Retirement Age

As we journey through life, our goals and priorities evolve, and so do our mortgage needs.

Whether you’re a fresh-faced second-time buyer or planning for your golden years, remortgaging can hold the key to your financial stability. 

But there are certain factors associated with your age that may affect your borrowing prospects. It’s vital to understand them inside and out to secure a perfect deal.‍

So, what role does age play when you’re considering remortgaging in your 60s or 70s, and how do the available options shift as you age?

In this guide, we delve deep into these questions, offering you a clear perspective on age-specific strategies.

Can I Remortgage After Retirement?

Yes, securing a remortgage in your retirement years is entirely possible. The crux here is showing that you can keep up with the monthly repayments, a task that might require a bit more effort once you retire.

Many lenders readily accept different kinds of pension income when assessing your application. State Pensions, company pensions, or private pensions usually make the cut. 

However, it’s essential to note that some lenders might not consider self-invested personal pensions (SIPPs) or drawdown pensions you manage yourself.

Therefore, it’s vital to gather substantial evidence of your ability to afford the remortgage, focusing on these accepted sources of income.

Is There an Age Limit to Remortgage?

Technically, there isn’t a universally fixed age limit for remortgaging. However, lenders often have their own set criteria. Here is a brief insight into the norms you might encounter:

• Some set a cap at the application phase, ranging between 55 and 88 years of age.
• Others stipulate an upper age limit by the end of the mortgage term, generally between 70 and 90 years.
• A few lenders align the maximum age limit with your expected retirement age.
• Then, some lenders don’t specify an age limit, focusing instead on your demonstrated ability to manage the mortgage payments throughout the term, potentially extending this to individuals who are 90 or even older.

What Remortgaging Options are Available for Those Over 60 and 70?

For individuals under 55 intending to remortgage, there’s a broad selection of lenders to choose from. 

However, as you pass the 55-year mark, options begin to taper, though prospects remain reasonably accessible for those above 60 and somewhat viable for individuals over 65.

Employing a good mortgage broker can markedly streamline this journey, especially if you are over 60 or 70.

A qualified broker can quickly identify lenders willing to consider your remortgage application, saving you a good deal of time and effort.

How Much Can I Remortgage?

To gauge how much you might be eligible to borrow through a remortgage, make use of our remortgage calculator.

It offers an estimated amount based on your income streams – which could be your State Pension, a private pension, or perhaps a company pension (and your partner’s income if you’re considering a joint mortgage).

Feel free to incorporate other types of pensions into the calculator to explore the potential borrowing scope from a fitting lender.

How Do I Remortgage in my 60s or 70s?

If you’re considering remortgaging in your 60s or 70s, know that it doesn’t have to be a complex process. In fact, with some careful preparation, it can be quite straightforward. Here’s how you can go about it, whether with the assistance of a broker or solo:

Step 1: Evaluate Your Financial Standing

Start by getting a comprehensive understanding of your current financial status. Focus on your existing equity and the loan-to-value ratio to develop a practical plan.

If you decide to work with a broker, they can provide expert insights into this.

Step 2:  Gather the Necessary Documents

Next, gather the documents you’ll need for the application. Typically, this includes proof of pension income among other things. A broker can guide you on the specifics if you choose to consult one.

Step 3: Review Your Credit Reports

Before you advance further, review your credit reports meticulously. Correct any errors or outdated information that could potentially hamper the application process. 

Step 4: Choose the Right Lender

Lastly, it’s time to choose a lender that suits your needs. If you’re going solo, do thorough research to find specialist lenders for individuals in your age bracket. 

But if you choose to engage with a broker, they can help pinpoint lenders with a proven track record in this sector.

To get started, get in touch with us. And we’ll connect you with a top mortgage broker to help with the whole remortgaging process.

Which Lenders Are Suitable for Retirees?

Navigating the remortgage landscape as a retiree can sometimes feel like a maze, mainly due to the varying eligibility criteria set by different lenders.

If you’re considering remortgaging in your retirement years, having an idea of these criteria can be quite handy.

Here is a glimpse of what some popular lenders offer (as of the time of this writing):

• Halifax – Accommodates applicants up until they are 80 years old at the end of the mortgage term. They take annuity income into account but not drawdown pension and SIPP income.
• Barclays – Generally sets the bar at 70 years of age or at the retirement age, whichever is earlier. They require proof of adequate income and consider annuity income but not SIPP income.
• Nationwide – Allows remortgages up to the age of 75 at the end of the mortgage term, accepting annuity income but not drawdown pension income.
• NatWest – Accepts applications from individuals up to 72 years of age, considering both annuity and SIPP incomes, but not drawdown pension income.
• Santander – Sets the age limit at 69 at the time of application, but existing customers may find some flexibility here. They consider annuity income, as well as drawdown pension and SIPP incomes.
• HSBC – Offers variable maximum age limits according to the mortgage type, and they consider annuity income, drawdown pension, and SIPP income.

What Are the Alternatives to Remortgaging for Retirees?

If remortgaging doesn’t sit well with your current circumstances, fear not. You have several other viable avenues to consider:

Lifetime Mortgage

This type of loan allows you to use your property as collateral, without the necessity to make any repayments during your lifetime.

The repayment of the principal loan amount, along with accumulated interest and additional fees, is deferred until specific events occur, such as moving into long-term care or selling the house.

Retirement Interest-Only Mortgage

This is a flexible option where you are only required to make monthly interest payments on the loan, without touching the capital amount.

It’s particularly suitable for individuals who might not have a significant pension or regular income but can afford to cover the interest payments throughout their retirement years.

Downsizing

This involves selling your current property and buying a smaller, more manageable one.

This strategy can release some equity and might even allow you to live mortgage-free, depending on the value difference between the old and new properties.

It’s important to remember that each of these alternatives presents its own set of benefits and implications.

Thus, conducting a careful analysis and perhaps consulting with a professional can assist in steering you towards the choice that best meets your financial goals.

The Bottom Line

Remortgaging in your 60s or 70s can be daunting, but it is possible, even with the challenges.

The paperwork can be extensive, the mortgage terms can be complex, and finding the best deal can be time-consuming. But these golden years should be about relaxation and enjoyment, not added stress.

That’s where a remortgage broker can help. They can simplify the process by:

• Taking care of all the paperwork.
• Offering expert advice on the current mortgage market to help you find the best options for your age group.
• Using their industry connections and knowledge to save you time and money.

If you’re thinking about remortgaging in your later years, don’t go it alone. Fill in this quick form and we’ll introduce you to an expert remortgage broker who can help you streamline the process and find the best deal for you.