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Customer - Purchase
Have dealt with a complicated mortgage very efficiently. The complications were my age (76) and wanted a commercial mortgage for a company that has not ...Read More

Mortgages For Older Persons

As modern medicine improves, the age that people in the UK are living to is going up. At the same time, those of us with gold plated final salary pension schemes are getting fewer and fewer.

Those who have a defined contribution pension are now able to use the pension freedoms to access their life savings however they wish, within certain tax allowances and after the age of 55.

But while most people used to use their pension to purchase an annuity when they retired, providing them with a guaranteed income for the rest of their lives, with interest rates having been so low for so long, fewer people are choosing this route.

In the mortgage market meanwhile, the way that lenders assess whether you are eligible for a mortgage has changed. They now need to be able to see that you can prove you will have enough money in income to repay your mortgage each month. For those who have chosen to access their pension through drawdown, this can prove trickier than getting a mortgage when you were earning a full time salary.

That said, there are plenty of options for borrowers who want to get a mortgage that they will still be repaying after they retire.

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What Our Customers Say

Ioannes Romer Riera - Purchase
Very professional and always available to give feedback and keep me updated on the different steps of the mortgage application. James & Stephen were great to work with. ...Read More
15 days ago

Customer - Remortgage
Capital fortune were incredibly helpful at moving my application along. They found me the best offer and ensure that things were done in a timely fashion helping make the process as easy as it can be. Stephen Marsh and James ...Read More
17 days ago

Customer - Buy to Let
This is the second time I have used Capital Fortune as and expat and again am very happy with the experience. A few issues were well thought through and resolved which ultimately resulted in an offer letter. Thank you to ...Read More
17 days ago

JJ - Purchase
Capital Fortune has been a God send to me, after my ex-husband refused to release me from our joint mortgage and no high street bank would provide me with the small mortgage I required to purchase a home of my ...Read More
1 months, 7 days ago

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Borrowing Past Retirement Age

With house prices rising on average in most areas of the UK, homeowners have had to take much bigger mortgages than was necessary 30 years ago. The bigger the mortgage, the longer it takes to repay and when you consider the average age of a first-time buyer is now in their 30s, taking a 35-year mortgage aged 35 takes you to the age of 70.

Mortgage lenders went through a phase recently of capping their maximum borrower age at 65 years old. This presented real problems for lots of homeowners, even those still in their 40s who weren’t planning to retire for two decades.

The regulator has since relaxed their rules a bit and as a result there are now a lot of lenders, particularly building societies, that will consider offering mortgages to borrowers aged up to 85 or 90. You’ll still need to show that you can afford to repay the mortgage, but lenders are being a bit more flexible about what counts as income.

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Retirement Mortgages

Over the past couple of years, some lenders have innovated and it’s now possible to get a retirement mortgage. This is an interest-only mortgage that allows you to repay the interest on your loan while you have an income and can afford it.

Once you retire, or if you decide you don’t want to keep paying this interest, it’s possible with some lenders to switch this mortgage into a lifetime mortgage. This means you don’t pay interest monthly but instead it is added to your mortgage balance and rolls up over time until the property is sold and the mortgage repaid.

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This type of loan is known as equity release and it requires specialist advice. One of our advisers can help you decide whether you could get a normal mortgage or if you think equity release might be more appropriate, to find someone who will be able to help.

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Buy-to-Let for Retired Borrowers

Many people in the UK view property as a better bet than pensions and as such we see a lot of older customers who want to invest in buy-to-let.

The usual rules apply when looking to get into buy-to-let and it can be a good option if you’re retired and want to invest in property as the mortgage is assessed on the rental income rather than your personal income.

Some lenders want to see that you have experience as a landlord or that you have other income as well before they’ll lend to you though, so it’s a good idea to talk to one of our advisers who will be able to help you find out what your options are.

Find Out Current Best Rates

Property Value
£
Mortgage Amount
£
Reason for Mortgage
Mortgage Type
Lender Initial Rate Type For Then APR* ERC* Fee
NatWest Intermediary 2 Year Tracker £995 Fee £250 Cashback Purchase CNW1.24%TrackerOct-20214.24%3.9%31-Oct-2021 £995
Skipton BS RETENTION 2 Year Fixed £995 Fee Rate Switch / Porting With Top Up SBS1.25%FixedNov-20214.99%4.1%30-Nov-2021 £995
NatWest Intermediary 2 Year Fixed £995 Fee £250 Cashback Purchase CNW1.28%FixedOct-20214.24%3.9%31-Oct-2021 £995
Santander UK Plc 2 Year Fixed £999 Fee Porting Cashback CAN1.28%FixedDec-20214%3.5%02-Dec-2021 £999
Santander UK Plc 2 Year Fixed £999 Fee (Scottish) Cashback CAN1.28%FixedDec-20214%3.5%02-Dec-2021 £999
Santander UK Plc 2 Year Fixed £999 Fee Cashback CAN1.28%FixedDec-20214%3.5%02-Dec-2021 £999
Halifax Intermediary FTB 2 Year Tracker £999 Fee BHX1.29%TrackerDec-20214.24%3.9%31-Dec-2021 £999
Halifax Intermediary 2 Year Tracker £999 Fee Purchase BHX1.29%TrackerDec-20214.24%3.9%31-Dec-2021 £999
Furness BS 2 Year Discount £999 Fee Cashback BFU1.29%Discount2 years 5.79%5.2%2 years £999
Post Office Intermediary 2 Year Fixed £1995 Fee Free Val POS1.33%FixedNov-20214.74%4.3%30-Nov-2021 £1995
Mortgage product availability is subject to status and availability. Although great care is taken to ensure that product details are as accurate as possible no liability can be accepted for errors or omissions.
*APR = Annual Percentage Rate *ERC = Early Repayment Charge
*These figures are only illustrative. An assessment of your needs will be confirmed before a recommendation can be made. A Key Facts Illustration, which is personal to your circumstances, will be provided if a recommendation for a mortgage product is made.

Best Discounted Rates

LenderRateType
Furness BS 2 Year Discount £999 Fee Cashback BFU1.29%
then 5.79
(variable)
DiscountRead More
Leeds BS 2 Year Discount £999 Fee Legal Assisted BLH1.39%
then 5.69
(variable)
DiscountRead More
Progressive BS 2 Year Discount No Fee Purchase BPG1.39%
then 5
(variable)
DiscountRead More

Best 5 Year Fixed Rates

LenderRateType
Skipton BS RETENTION 2 Year Fixed £995 Fee Rate Switch / Porting With Top Up SBS1.25%
then 4.99
(variable)
FixedRead More
NatWest Intermediary 2 Year Fixed £995 Fee £250 Cashback Purchase CNW1.28%
then 4.24
(variable)
FixedRead More
Santander UK Plc 2 Year Fixed £999 Fee Porting Cashback CAN1.28%
then 4
(variable)
FixedRead More
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