The criteria surrounding age limits on mortgages can vary greatly between lenders. While some may impose a cap as low as 55, others can permit borrowers to be as old as 85. The latter group is comprised mainly of high-street banks and mortgage providers. However, while many will have more competitive interest rates, they may also lack flexibility in their offerings.

Alternatively, smaller lenders such as local building societies and private banks are often more flexible with their lending criteria. In some cases, they may not have an upper age limit at all. Whilst the interest rates may be marginally higher, a mortgage broker can help to compare products across a wider range of lenders to find the one most suited to your needs.

Reasons to remortgage

When you’re retired, there are still several reasons why you might want to refinance your mortgage whether this is to remortgage or take out a new mortgage, such as:

• Get the right home – during retirement, you may want to buy a more suitable home
• Improve your current home – if you decide to renovate your existing home to meet your retirement needs
• Pay off an interest-only mortgage – if you have come to the end of an interest only mortgage, you may need to remortgage to pay off the outstanding balance

Is my retirement income stable enough for a new mortgage?

Of course, any successful mortgage application depends on the borrower having a secure and reliable income stream. For those aged 65 and over who may be reliant on pension payments, it may be more challenging to prove this to lenders. However, it is possible to demonstrate to providers that pension arrangements and other investments are sufficient to facilitate regular repayments. To increase credibility, it may also be helpful to present a well-considered retirement date.

In order to make an informed decision about the best mortgage option for your circumstances, it's important to do your research. Look at age limits, interest rates, eligibility criteria, flexibility options, term lengths and fees for a range of products to see what's available. Comparison sites can offer assistance, but it's often worth engaging with a mortgage broker who can access a broader range of lenders and offer guidance on which product may be most suitable.

If you are retired and looking for a mortgage, contact us today at 0151662 0188 or email [email protected].