Over 55 and looking to move? You may have more options than you think
There’s a little-known option in the mortgage market that could help some people aged 55 and over buy a new property – and surprisingly, many people, including some estate agents, aren’t aware that it exists.
Lifetime mortgages can potentially be used to purchase a property, rather than simply releasing money from an existing home.
That could make a real difference for older homeowners who want to move but have assumed getting a mortgage later in life is no longer possible.
Perhaps you’re looking to downsize, move closer to family, relocate to a different area or find a home that better suits your needs. You may have substantial equity in your current property but still need additional borrowing to make the move possible.
A lifetime mortgage could potentially provide a way to raise funds towards the purchase of your new home, subject to the lender’s criteria and your individual circumstances.
This matters because age doesn't automatically mean you have to stop borrowing. Later-life lending has developed significantly, with specialist lenders offering solutions designed around borrowers who may be retired or approaching retirement.
It’s also worth spreading the word. If you’re under 55, you might know a parent, relative or friend who has been thinking about moving but believes their age rules out getting a mortgage. They may simply not realise that later-life borrowing could be an option.
Of course, a lifetime mortgage isn't suitable for everyone. Interest can build up over time, reducing the equity remaining in the property and potentially affecting what you leave to your family. It can also affect means-tested benefits and other financial arrangements. That's why specialist advice matters before you decide.
As a mortgage broker, I can review your circumstances and explain what options may be available, including whether a lifetime mortgage could help you buy your next home.
So, if you're 55+ and have been told – or simply assumed – that you're too old for a mortgage, it could be worth having a conversation before ruling it out.
And if you're reading this and thinking of a parent or family member, why not pass it on to them? They may have more options than they realise.
SPEAK TO AN ADVISER
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
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