In the UK, there is no age limit for mortgages. However, most lenders set a maximum age limit for granting a mortgage, which is between 70 and 85 years. It is also possible to find a lender without a specific age limit. If you are a retired buyer who is stressed about the mortgage application, you can always talk to a mortgage advisor in Skegness, who can guide you through the process.
Mortgage Options for Older Borrowers
Retirement Interest-Only Mortgages
If you choose the RIO route, paying the monthly interest is enough. During your lifetime, you may not have to repay the capital. Once you sell the home, the outstanding may be settled. Here, you may not find any fixed end date.
When you are between 50 and 55, you can consider this option. However, it may depend on the lender to some extent. Since the monthly payments are always less than the full repayment amount, it is considered a manageable option. Pension income usually comes into play here.
Lifetime Mortgage
Lifetime mortgages are similar to equity release. Here, you can borrow against the property value without any monthly payments. Interests add to the outstanding balance, which must be repaid when the property is sold. Over time, the interest may increase significantly. Therefore, the total amount can grow.
Older People’s Shared Ownership (OPSO)
For people aged 55 and over, there is a government scheme. With the assistance of the scheme, you can easily buy a property share. It can easily range between 10% to 75%. When the share reaches to 75%, you may not have to pay any rent. Here, you may be paying rent that you do not own.
To know more about the age limits, you can always talk with the expert mortgage advisor in Skegness from Canon Independent Mortgage Services. We can provide you with customised solutions. Contact us today.