Is It Possible to Get a Mortgage Over 70?
Yes, it is possible. While many mainstream lenders set their maximum age at maturity between 70 and 80, there are lenders who will accept borrowers well into their 70s and even beyond. Some building societies and specialist lenders have no upper age limit at all, assessing each application on its own merits.
The FCA does not impose any age restrictions on mortgage lending. Its rules simply require lenders to carry out a proper affordability assessment. As long as you can demonstrate that you can afford the repayments, your age alone should not be a barrier.
That said, the pool of available lenders does narrow as you get older, and the mortgage terms on offer will be shorter. This makes it important to seek specialist advice to find the most suitable options.
Income Requirements for Borrowers Over 70
At 70 and above, most borrowers are already retired, so lenders will focus entirely on your retirement income. Acceptable income sources typically include:
- State Pension – the full new State Pension is currently around £11,500 per year, though this changes with annual uprating.
- Defined benefit pensions – these are among the most favourably viewed income sources because they provide a guaranteed, regular payment.
- Defined contribution pension drawdown – lenders may apply a sustainability test to ensure the fund can support the income level for the required period.
- Other income – annuity payments, rental income, and investment returns may also be considered.
The total income needs to be sufficient to cover the mortgage payments with a comfortable margin. Lenders typically stress-test your affordability at a rate higher than the actual mortgage rate to ensure you can cope if rates rise.
Mortgage Options for Over 70s
Standard repayment mortgages are available to borrowers over 70, though the shorter terms mean monthly payments will be higher. If you only have a small amount left to pay on your existing mortgage, a short-term repayment deal could work well.
Retirement interest-only (RIO) mortgages are often the most suitable product for borrowers in their 70s. You pay the monthly interest, and the capital is repaid when the property is eventually sold. There is no fixed term, which removes the age-at-maturity problem entirely.
Equity release is another option worth considering if you want to access funds tied up in your home without making monthly repayments. With a lifetime mortgage, interest rolls up over time and the total amount is repaid from the property sale. The Equity Release Council's no-negative-equity guarantee means you will never owe more than the property is worth.
How to Improve Your Chances of Approval
Keeping your borrowing amount modest relative to your property value is one of the most effective ways to improve your chances. A low LTV shows the lender there is plenty of equity to protect their loan, which makes them more willing to lend.
Having well-documented income is equally important. Gather up-to-date pension statements, State Pension forecasts, and evidence of any other regular income before you apply. The more thoroughly you can evidence your finances, the smoother the process will be.
Working with a specialist mortgage broker who has experience with older borrowers can make a significant difference. They will know exactly which lenders are most likely to accept your application and can present your case in the most favourable light.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.