Mortgages in later life
We understand that there are any number of reasons that someone could be seeking a mortgage over the age of 50. Perhaps they want to stay in the family home, release equity to make improvements, or want to help children through university or get onto the housing ladder.
We help customers who are approaching retirement, looking to borrow into retirement, or those already in retirement who simply want to continue with their current mortgage.
A retirement mortgage programme for older borrowers
Over the last few years older borrowers have faced significant challenges in accessing the mortgage market. In 2014 legislation known as the Mortgage Market Review (MMR) led to many banks and building societies refusing to lend to existing mortgage holders where the term would take the borrower over the age of 65. More emphasis was placed on affordability, which meant lenders must now look closely at the income and outgoings of mortgage applicants. This leaves older borrowers in their fifties and above with a reduced choice of mortgage products in the UK.
This, plus changes to state pension and retirement laws including the abolishment of the compulsory retirement age means the choices for borrowing later in life are limited. We are pleased to confirm that all of our mortgage products are available to those in retirement with no upper age limit. Through our Retirement Mortgage Programme we’ll accept 100% of a borrower’s pension as well as a proportion of other forms of income, such as investments, when addressing affordability.
You can compare different types of later life mortgages using our handy key facts table.
What type of later life borrower are you?
Are you seeking a later life or RIO mortgage? Or maybe you know what you need the money for but you're unsure if a later life mortgage is the best option. Use our handy flowchart to find out what kind of later life borrower you are.
Key features
of our later life
mortgages
- Available to applicants aged 50 or over
- No maximum age limit
- Maximum LTV 75%
- Up to a 40 year term available
- Borrowing for: home improvements, second home purchase or gifting to help children onto the property ladder
Useful resources
for later life
borrowers
Latest from
the blog
Why choose Ipswich Building Society over other lenders? Take a look at our lending criteria and who we help to find out.
Longer term mortgages – why borrowers are taking out mortgages for longer
In recent years, borrowers across the country have been taking out longer and longer terms on their mortgage, sometimes up to 40 years. What is driving this new phenomenon?
The facts of later life
Our research shows that more needs to be done to communicate the facts about borrowing in later life and who later life mortgages might be suitable for.
Later life and Retirement Interest Only mortgages explained
If you’re thinking about getting a mortgage at any age, there’s a lot to think about before you take the plunge. It’s always best to seek out professional, no-obligation advice before taking out a mortgage, whether it’s your first home or your last.
All you need to know about borrowing in later life
Our handy guidebook explains all you need to know if you're over 50 and thinking about taking out a mortgage. Borrowing in later life is now easier than ever.
Retirement Interest Only (RIO) mortgages – the what, who, how and why
If you’re an older borrower looking for a mortgage in retirement you’ll probably have heard about a Retirement Interest Only loan, commonly shortened to RIO. But what exactly is a RIO mortgage and how does it differ from a residential home loan?
