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We are living longer, healthier lives causing the UK population to change: people are getting married later, delaying buying their first home and choosing to wait longer before starting a family.
The average age of retirement in the UK is 65, though this is slowly creeping upwards with much of the adult population working into their late 60s and beyond.
Once you’re heading in the direction of a well-earned retirement, or are already enjoying the fruits of your labour, you may start to review your finances. You may decide to take out a mortgage on your property or apply for additional lending on the mortgage you already have - actions probably not unfamiliar to you.
But there is a problem. Following the 2008 financial crash, borrowing became particularly difficult for those heading towards retirement with many lenders lowering their maximum lending age limit in order to mitigate risk – an attitude which, unfortunately, remains with many organisations. This meant mortgages that were available were limited, niche and almost impossible to obtain.
However, it’s not all doom and gloom. The good news is that almost a decade later in 2017, the Financial Conduct Authority (FCA) reversed this decision and, once again, welcomed a larger (and older) customer pool to seek finance.
And that’s where we can help.
Reasons why you might want a mortgage in later life
The need to borrow in later life can be the result of various needs and requirements. These may include, but not be limited to:
- Purchasing your ideal retirement home
- Funding home improvements
- Gifting equity from your home to a loved one looking to step onto the property ladder
- Switching to a new lender and/or mortgage product and the end of a current mortgage’s term.
How we can help?
At Newbury Building Society, we can help you with the following:
A maximum age at end of mortgage term of 90 years: we lend up to the age of 90 across our entire mortgage range. This means the term of your mortgage may run until your 90th birthday. This essentially means you have our entire mortgage range at your fingertips. You can find out more HERE.
Read “Member story: getting a mortgage in retirement needn’t be difficult” to discover how we helped one retired couple remortgage their home.
Retirement Interest-Only (RIO) mortgage: our Retirement Interest-Only (RIO) mortgage supports borrowers 60 years and above who are retired and do not necessarily want to downsize their current property and wish to remain in their home. You can find out more HERE.
Borrowing in retirement needn’t be difficult or a conversation you should dread to have. Our friendly qualified mortgage advisers are on hand to make sure your mortgage is suitable for you and your circumstances, giving you peace of mind.
Remember: no matter your reason for seeking finance, it’s always a good idea to obtain impartial advice from an independent financial adviser to help you fully understand the implications of taking out a mortgage in retirement.
For further information, visit our dedicated lending into retirement page. Alternatively, to book a mortgage appointment or submit a contact us form visit our website and a qualified mortgage adviser will be in touch.
Due to ongoing Covid-19 safeguarding precautions, mortgage appointments can only be undertaken by telephone.
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.