Older Borrower Mortgages
Solutions for the over 50s, 60s, 70s and beyond
There is an abundance of choice for mortgages in later life, and with access to a comprehensive range of lenders we are confident of finding the right one for you. You may already be retired and in receipt of pension income, due to retire shortly or even perhaps still working to an age which is beyond typical state retirement. Obtaining a mortgage will be possible in each of these scenarios.
Older Borrower highlights include:
- No maximum age
- Residential or Buy to Let
- Purchases and Remortgages
- Interest Only available
- Earned income in later life accepted
- Drawdown pension income accepted
- Age restricted properties accepted up to 60% Loan to Value
- Retirement Interest Only (RIO) mortgages available up to 75% Loan to Value
There is a wide range of lenders that specialise in later life mortgages and, after getting to know you a little better, we can recommend the best option for you.
Could you benefit from an Older Borrower mortgage?
We’ll search the market to find the best fit for you. Fill out our short form and we’ll be in touch to explore your options.
A guide to Retirement Interest Only (RIO) mortgages
A Retirement Interest Only mortgage is a loan secured against your property for which you will pay only the interest to the lender until you die or move into long term care. The capital is repaid by the sale of your property when either of these events occur, but you are permitted to repay the borrowing sooner should you wish. You will have no penalty to repay early, provided that you are no longer tied in to a particular deal, such as a fixed rate.
A RIO mortgage does not require you to have a separate repayment vehicle for settling the loan and it will instead rely on the equity in your property to do this. The minimum amount of equity with one lender is 25%, meaning that the mortgage may be 75% of your property’s value.
You will need to demonstrate a suitable amount of income to achieve a RIO mortgage and this must continue for the remainder of your life. For a joint application, each applicant must be able to show a sufficient income to cover the mortgage affordability independently of the other. Any spousal entitlement that passes between couples upon the death of one will be considered in the affordability assessment. The typical income multiple applied by lenders for a RIO mortgage is 4.5, although it is possible to achieve a 4.75 multiple where there is at least 45% equity remaining in your property.
A Retirement Interest Only mortgage provides an excellent alternative to a standard Interest Only mortgage in later life. This is because it removes the requirement to repay the loan by the end of a defined term. It may also be viewed as a strong alternative to an equity release plan because the agreement will last until the end of life but the terms for repaying early tend to be more favourable. With a RIO mortgage you will be paying the interest on a monthly basis. There is no compounding effect and the equity in your property will therefore not reduce as a result of this.
To find out more about obtaining a Retirement Interest Only mortgage, please fill out our short enquiry, give us a call on 0330 133 6183 or use our live chat facility. We’ll be very happy to help.
Our mortgage help for
Older Borrowers
At Creative Lending Solutions we have a detailed knowledge of the later life market, and know where to turn for the mortgage you require.
We can help by locating mortgages that fit your circumstances, often with no upper age limit on their term. By understanding the unique criteria of one lender over another this better helps us recommend the most appropriate option to you; whether this is simply to obtain a more favourable deal, to raise additional borrowing or to make other changes to your mortgage arrangements.
If you proceed with our recommended option, we will be on hand at every step of the new mortgage process. We will complete the lender’s application form and forward them your supporting documentation. We will respond to the lender’s underwriter with answers to any questions they may have and to offer assurances where they may be required. Once your new mortgage offer has been issued, we will remain available for any questions you may have and for any changes that may be needed up until completion.
More great reasons to get in touch
- Friendly, professional & convenient
- Over 20 years’ industry experience
- We value our customers
- Same day pre-approvals
- Full support provided
- Jargon-free
- Fast communication
- Available weekdays until 7pm
Your home may be repossessed if you do not keep up repayments on your mortgage.