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Mortgages For Over 70s

Are you a person over 70 looking for a mortgage? Then this is the only guide you need to complete your search successfully.
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As people live longer and healthier lives, many over 70s in the UK are exploring mortgage options to buy a new home, downsize, or release equity from their existing property.

If you’re above 70 and worrying whether you’ll qualify for a mortgage, don’t worry. There are still loads of mortgages for over 70s options that you can take advantage of if you meet the lenders criteria.

With special products designed for older borrowers, such as retirement interest-only mortgages and equity release plans, it’s now easier than ever for seniors to manage their housing needs.

While it’s certainly true that the number of lenders you’ll be able to approach will be fewer, nonetheless, many lenders cater to this age bracket. You just need to provide proof that you can pay the loan back and meet the criteria during the application process.  

In this article, we’ll take a closer look at mortgage options available for people over 70 and the maximum amount you can borrow.

Do You Really Need A Mortgage At 70?

While 70 can seem like an advanced age to apply for a mortgage, you might need one even at this time of life. 

For instance, you might be looking to get a rental property to supplement your pension income. Or, you may want to move to a different property that’s more suitable for you.

Whatever the reason, it’s not uncommon for older people to look at mortgage options. Especially, buy-to-let mortgages are very popular as they allow you to get rental income from the subject property

What Are The Different Types Of Mortgages for Over 70s in The UK?

As with anything, there are different types of mortgages that you can apply for after you’re 70. These are as follows:

1. Capital Repayment Mortgages

Capital Repayment Mortgage

Capital Repayment mortgages are the usual types of mortgages offered by building societies and banks. Here, you borrow an amount at a certain interest rate and need to repay it both the capital and interest usually in monthly instalments. 

2. Interest Only Mortgages

Interest-Only Mortgage

Here, you only need to pay back the interest every month, and the capital amount is due only at the end of the loan term. 

To pay back the capital amount, you usually need to sell the property at the end of the loan term and settle the due amount or another acceptable repayment vehicle to the lender. 

3. Equity Release Schemes

Equity Release Mortgage

These schemes are designed so that the borrower can take a loan against the value of their property without selling it. 

Retired persons often opt for this when they want to draw upon their existing property equity.

What Is The Maximum Amount That 70-Year-Olds Can Borrow?

There’s no fixed maximum amount that you can borrow as a 70-year-old. Lenders usually decide on the lending amount based on your existing financial condition, age, health and existing properties.

That’s why, when taking a mortgage, lenders put you through an eligibility assessment to determine the amount you can be lent safely. 

As long as you have a good credit history and can prove that you can pay the loan back, you shouldn’t face any problems getting approved. 

Repayment Terms for Mortgages Over 70

Traditionally, mortgages have been granted for terms of 25-30 years. 

However, if you’re a 70-year-old taking out a mortgage, then you’ll not be provided with such a long repayment term simply due to the (harsh but true) fact that you’re not that young anymore.

In such cases, you’ll likely have to make do with a 10-15 year term. But this means your monthly repayment amount will be larger, and you might even have to deal with higher interest rates because of the need to approach certain specialised lenders. .

Frequently Asked Questions (FAQs)

1. Can 70-year-olds Qualify For mortgages?

If you meet the lenders criteria that your applying for, then yes. Older people typically look to get mortgages  to repay debts or for home renovations rather than making house purchases You might also be eligible for other lending products such as further advance mortgages.

2. Is It Possible To Get An Interest Only Mortgage For People Over 70?

Yes, it is possible. Interest-only mortgages can be a more cost-effective option for the elderly as they only need to repay the interest every month. This ensures that monthly repayments will be smaller, and you can pay back the capital amount at the end of the term.

The following are the three options that you can go for:

3. Are 70-year-olds Eligible For Buy-To-Let Mortgages?

Absolutely! People above 70 can opt for buy-to-let mortgages, as we’ve already mentioned before. Since buy-to-let mortgage eligibility revolves less around your age and income and more around the rent you’ll receive, it’s easier to get approval.

In case you’re an established landlord and can put down a large deposit, the chances of getting the loan approved are higher.

Interestingly, there may be no maximum age with buy to let mortgages for certain lenders. 

4. What Is Meant By Later Life Mortgages?

These are mortgages designed for people over 50 years of age, who are retired or nearing retirement. These mortgages can be a good way to purchase new property, remortgage, or release equity.

Please bear in mind this article is for information purposes only and any advice surrounding equity release products will need to be given by an advisor who holds the relevant qualification with the FCA. 

Your home may be repossessed if you do not keep up repayments on your mortgage.

All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.

I am a CeMAP (Certificate in Mortgage Advice and Practice) qualified mortgage adviser with a proven track record of successfully helping my clients achieve their property goals within the whole of the market. I personally specialise with clients who have a bad credit history (Defaults, CCJs, IVA etc), self-employed, first-time buyers & Buy To Lets.

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