If you decide to take out a mortgage in your 60s, or older, you will have to make the same choices as a younger borrower.
But the decisions you reach could well be different. Here are the things you will need to think about
The amount
This will depend on a combination of factors, including the value of your property, what you can afford to repay, and what your mortgage lender is willing to lend you.
Unless you have a very high level of disposable income, lenders are more likely to consider you if you ask for a relatively low proportion of your property’s value.
For more on this, go to How much can I borrow?
The Term
If you are only just 60, you might find a handful of lenders willing to offer you a traditional 25-year mortgage term.
If you are 65, you might be able to borrow over 15 to 20 years.
But if you are 70 or above, you may have to accept a term of 10 years or less.
To find out more, read What mortgage term should I choose?
The Type of Mortgage
You can opt for a repayment mortgage (also known as a capital and interest mortgage) or an Interest-only mortgage.
Generally, it’s better to choose repayment, but if you are willing to sell up and downsize to clear your loan at the end of the term, an interest-only deal would have the advantage of lower monthly repayments.
For more on this, visit Should I choose repayment or interest-only?
The Type of Interest Deal
Most people go for a fixed-rate or a discounted variable interest deal although there are other options. (See our A-Z of all UK mortgage types.)
To help you decide, read Should I go for a fix or a discount?
The Length of the Deal
Fixes and discounts can last for anything from a few months to your full mortgage term, but deals lasting two to five years are most popular.
To find out more, see What length of Mortgage deal should I choose?
The Lender
To find a lender willing to consider your circumstances, contact a mortgage broker or an IFA (independent financial adviser).
To help you make the choice, go to Finding your mortgage
Read On:
- Mortgages For The Over-60s
- Am I Too Old To Get A Mortgage?
- What If I Can’t Get A Mortgage?
- Mortgage Choices For The Over-60s