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More of us than ever are finding ourselves stepping onto the property ladder a little later in life. In fact, the average age of first-time borrowers has crept up over the past few decades, a trend that’s reshaping our journey towards homeownership. This shift means paying off a mortgage into and past retirement is becoming part of the new normal.
If you’re over 50 and exploring the mortgage options available, like eyeing up your first home, wondering how interest only works, or considering a second property, we’ve got lots of options for you to be get excited about.
The good news is, yes, there are plenty of mortgage options available. There’s no legal maximum age for a mortgage, although lenders will impose their own age caps on their mortgage products. The real determinant of borrowing capability is your financial health. The main difference for an older borrower can be the length of the mortgage term, think 20 years instead of 30. When looking at a shorter term, lenders will look at borrower financial income, including the expected shift in income up to and into retirement.
Applying for a mortgage at any stage in life will take into consideration your whole financial picture. Mortgage brokers and lenders want to ensure you can comfortably afford the mortgage repayments while also keeping your future in mind. This is especially true for older borrowers who may be considering a mortgage which takes them towards retirement and beyond.
So, a mortgage later in life is not about being harder to get, it’s more about finding the right fit for you and your lifestyle. For example, if you’re looking for a mortgage at 55 and want to repay it before you’re 70, the shorter mortgage term means the monthly repayments will be higher, but on the plus side, the overall interest you’ll pay back is likely to be lower as you’re paying it back over a shorter time frame.
At the heart of our approach is ensuring the mortgage you choose today remains manageable tomorrow. For example, our 50+ residential mortgage requires the amount borrowed to be paid in full by the mortgage's end. To ensure this remains within reach, we take a holistic view of your financial health.
At Hodge, every individual application is reviewed by an experienced member of the Mortgages team. Everyone your broker speaks with has a thorough understanding of both working and retirement income so you can be sure they’ll take a common-sense approach when assessing your needs.
Designed with the over-50s in mind, our 50+ Mortgage is designed to fit the unique phase of your life. It’s available as repayment or interest only option, giving you a financial solution catered for your life stage as well as keeping equity in your home.
We know life doesn’t stand still as we approach retirement, so our 50+ Mortgage accommodates a diverse range of income sources to assess affordability, making sure your mortgage payments comfortably fit into your retirement plans.
A RIO mortgage gives a lifelong commitment to your financial flexibility. You can secure a RIO Mortgage on your main property, and it will stay in place for life. You cover the interest payments each month and keep the principal balance intact. And you don’t need to be retired to apply for a RIO Mortgage, just between the ages of 50 and 88 years old.
We also offer a loan-to-value of up to 75%, which means your loan is for a maximum 75% of the home's value. This solution allows you to unlock value in your home to do things like pay off debts, support family members, fund your lifestyle, make home improvements, or even go on a dream holiday.
For both 50+ and RIO Mortgages, we’ll consider the following types of income alongside your employed/ self-employed income if you’re still working:
Pension income: retirement funds and any future entitlements
Investment income: investment portfolio such as stocks and bonds
Rental incomes: from a long-term residential lease, a commercial property, or even a limited company residential setup
Holiday rentals: income from any holiday homes you rent out
Supportive incomes: such as spousal or maintenance income contributes to your household
Work-related incomes: income from sub-contractors or those with unique income scenarios
And yes, we even consider certain benefits, though it’s best to chat with a financial adviser or mortgage broker for the specifics on what’s included.
You can find out more about our mortgage products here.
The Hodge Early Repayment Promise gives you peace of mind, knowing if something happens which means you need to sell your property and move out, you won’t be penalised by early repayment charges – giving you one less thing to worry about.
These mortgage solutions are tailored to meet your financial needs but also align with your life's journey. At every step, we're here to ensure your mortgage decision enhances your lifestyle and secures your financial wellbeing into retirement and beyond.
If you’re considering applying for one of these mortgage products, we recommend you talk to a Financial Adviser. They’ll help you find the right mortgage for your lifestyle and future plans, looking at the big picture, ensuring your mortgage choice is as comfortable and fitting as your favourite pair of shoes. You can search for a financial adviser to suit your needs at unbiased.co.uk.
This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk.
Your home may be repossessed if you do not keep up repayments on your mortgage.
