If you are over 55 and looking for mortgage options, there are a few different routes you could explore:
Retirement Interest Only (RIO) mortgages:
These are interest-only mortgages that are designed specifically for older borrowers. With a RIO mortgage, you only pay the interest on the loan each month, and the capital is repaid when you sell the property or pass away. You will need to have a reliable income to show that you can afford the monthly interest payments, but there is no set term for the mortgage and you can continue to live in the property for as long as you wish.
Equity release mortgages:
These are also known as lifetime mortgages and are available to borrowers aged 55 or over. With an equity release mortgage, you borrow money against the value of your property, but you do not have to make any repayments while you are alive. Instead, the loan is repaid when you sell the property or pass away, usually from the proceeds of the sale. However, be aware that interest rates on equity release mortgages tend to be higher than on other types of mortgage, and the amount of equity you can release may be limited.
If you have a regular income and can demonstrate that you can afford the monthly repayments, you may be able to secure a standard mortgage. However, you may have to take the mortgage over a shorter term than someone who is younger, and you may need to have a larger deposit to secure a favourable interest rate. It’s important to seek independent financial advice before taking out any mortgage, especially if you are over 55, as there are many factors to consider, including your income, health, and future plans.