Can I get a mortgage at 60?

If you’re wondering if you can get a mortgage at 60, you’re certainly not alone. In a LiveMore survey conducted last year, a mere 4% of people over 50 believed they could take out a new mortgage.

There are now 15.5 million people in the UK aged 60 and over, making up 23% of our total population. That’s nearly a quarter of us who are potentially asking the question: “Can I get a mortgage at 60?”

Let’s debunk some myths.

Myth One: “I am too old for a mortgage”

You are never too old for a mortgage. Our oldest customer was 92 years old when she took her mortgage with us.

It’s important, however, to recognise that not all lenders live and breathe mortgages for older borrowers, as we do. A mortgage for 60-year-olds and over can be something the average mortgage lender will shy away from.

Unfortunately, despite our ageing demographic, age discrimination is still widespread in financial services.

Our 2022 survey also found that only 28% of people over 50 felt confident they could successfully, apply for a credit card. This compares to 36% of 30- to 50-year-olds.

Whether the ageism is real or not, it is certainly something that older borrowers perceive.

Many people, no matter their age, are quite capable of servicing a mortgage. You may still be working in your 60s and even through your 70s, as is often the case today. If you fit the affordability criteria, there’s no reason at all why you shouldn’t get a mortgage regardless of how old you are.

Myth Two: “I can’t get a mortgage if I’m retired”

Yes, you can get a mortgage if you are retired. Whether you’re 60 or 90, retired, still working - or even a bit of both - you can still get a mortgage. 

In 2021, a single, 92-year-old retiree (the one I mentioned earlier) came to us looking for a mortgage for her dream penthouse. She had been rejected by high street lenders. However, she had two pension income streams and a state benefit allowance.

We were able to offer her our five-year fixed product, giving her the full loan she wanted. She happily bought her dream apartment.

Working or not, you too may have other assets such as a pension or investments. These are all valid forms of income, which lenders often ignore. You just need to talk to a lender who looks at all income, not just salary.

Myth Three: “Lifetime mortgages for over 60s is my only option”

Untrue. While a lifetime mortgage for over 60s may suit one person, for another, it could be a poor outcome.

Lifetime mortgages, also called equity release, are where you receive your mortgage as a lump sum without having to make monthly payments. If you want to, you can pay the interest each month. If you don’t, the interest is added to what you owe and compounds as time goes by.

Lifetime mortgages for over 60s can be useful if you wish to remortgage to clear an existing mortgage before retirement. Or maybe you want to pay off outstanding debts, fund home improvements or repairs.

However, lifetime mortgages can affect the future value of your estate and inheritance amongst other things. And it is not your only possible option for a mortgage when you’re in your 60s. Depending on your financial circumstances, you could still be eligible for a standard interest-only mortgage, a retirement interest-only mortgage (whether you’re retired or not), or a standard and capital (repayment) mortgage.