Mortgages post-retirement

Having a mortgage after you retire may not be ideal, but a large amount of people approaching retirement find themselves still paying off their mortgages for a variety of reasons.

Things do not always go as planned in life. Problems can arise meaning that people might have to retire early with a mortgage still in place, or may not have been able to pay the mortgage off as quickly as expected leaving a mortgage to pay when they reach retirement age.

Some common reasons people end up with a longer mortgage than they expect include:

The maximum age for many lenders has been declining somewhat over the years – it used to be common for lenders to consider mortgages that ran to age 75 or 85, however that has dropped now to 65 or state pension age for a lot of lenders.

However there are still lenders who will consider lending into retirement provided you can demonstrate how you will be able to manage the payments.

Can I get a mortgage if I am about to retire?

Whilst some lenders may point blank refuse to lend if the term runs past your state retirement age, there are still some options out there depending on your circumstances. If you are already retired and you can prove that you have the income in order to meet the monthly payments, some lenders will consider you.

For those currently working but looking to borrow past their retirement age you need to be able to prove you have a pension in place and that it will be enough to meet the payments. Quite often lenders will base the amount you can borrow on your projected pension income rather than your current income, which can mean the amount you can borrow could be lower than you think.

Getting advice

Whilst it is definitely harder to borrow post-retirement than it used to be, there are still options open to you because of the more complex calculations and criteria that now applies getting the help of a broker is definitely beneficial. Here at London and Country we offer award winning, fee free, independent advice and can help you find the best deal as well as guiding you through the application process. To speak to an expert adviser call us free today.


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