The good news is that mortgages are still possible after age 70 if you meet certain criteria. You may also be able to access equity release schemes like home reversion plans, which can help you unlock cash from your home in exchange for regular or lump sum payments.
As life expectancy continues to increase mortgage over 70 providers have been adjusting their eligibility criteria accordingly. Some lenders now allow you to take out a mortgage up to age 95.
Generally, lenders will ask how much you have left to pay on your existing debts and what your forecast retirement income is before granting you a mortgage. This is because a lender will want to ensure that you will be able to comfortably afford repayments even when you have stopped working.
Securing Your Dream Home in Your Golden Years: Halifax Mortgages for Over 70s
It’s important to remember that you will likely need to put down a larger deposit than if you were buying a property at a younger age. The exact amount will depend on your circumstances but usually a deposit of around 20% will be required, although this can vary.
You can choose between a standard repayment mortgage or an interest only mortgage for over 70s. A repayment mortgage involves paying back both the principal and interest each month which reduces the outstanding balance over time. This is the most common type of mortgage for older borrowers.
Alternatively, you could opt for a lifetime mortgage, which allows you to borrow against the value of your home. These schemes are available to people over the age of 55 and are a popular option for those aged over 70.