The benefits of remortgaging in later life are no different than at any other time. You can save money, especially compared to rolling onto your lender’s default rate, or you can release capital for home improvements, to purchase a second home, or to consolidate debts. The good news is, mortgage providers are usually happy to lend up to a ripe old age, and even if you’re not eligible for a traditional mortgage there are still other options available.
Why Is It Sometimes Harder?
Lenders need to be certain you’ll be able to keep up with repayments throughout the term of the mortgage. As you approach retirement age, it’s likely your income will decrease soon if it hasn’t already, and providers need proof that you’ll still be able to pay the mortgage. As long as you can provide that proof, usually via your pension pot, investments, or expected retirement income, then you shouldn’t have a problem remortgaging.
What’s The Maximum Age I Can Remortgage?
The great news is, there are now more possibilities than ever for older people to remortgage. If you’re under 60 you shouldn’t have any problems, but some lenders may want you to pay off the loan by age 70 or 75. So the closer you get to 60 the smaller the window gets to pay it off, and therefore the monthly repayments can be higher.
For those over 60, you may still be able to remortgage. Some lenders even go up to age 80, but this very much depends on your financial situation and credit score. If you’re not able to remortgage there are other products which may be available to you such as ‘Lifetime Mortgages’. You’ll have to own some equity in a property to take advantage of this type of Equity Release, but if you’re eligible you can use it to pay off your existing mortgage, move house, buy a second home, or fund your retirement.
The Bottom Line
There are plenty of options available to older people, so no matter what age you are we should be able to help you. Which product is right for you depends on your financial situation, your credit score, and your plans for retirement and later life. This is why it’s important to come and speak with us. We’re impartial brokers and we understand each lenders’ criteria. This means we can find and arrange the most suitable product for your situation, so you can enjoy later life to the full.
It’s completely free to chat with us and discuss your circumstances, so click the link below to book your free consultation. We look forward to helping you!
