Remortgaging Into Retirement

We’ll explain how it’s still possible to remortgage your home loan when you reach retirement age, what the application process involves, and how a mortgage broker can help you make an informed decision by explaining all the options available.

Can you remortgage when you’ve retired?

Yes, you can still remortgage with certain lenders. However, you will still need to prove you can afford the monthly repayments on the mortgage, which becomes more difficult if you’re not receiving income from employment.

Most lenders will accept pension income as an income type when deciding whether to approve your application. However, there are different types of pension income, and not all lenders will consider them.

Almost all lenders will include your State, company, or private pension. Not all lenders will include a self-invested personal pension (SIPP) or a drawdown pension you manage yourself. This can make it more difficult to prove that you can afford to remortgage.

What is the maximum age for remortgaging?

There is no set maximum age limit for remortgaging your house, so each lender has their own rules:

• Some have a maximum age limit at the time of application, which ranges from 55 to 88
• Some have a maximum age limit at the end of the mortgage term, which ranges from 70 to 90.
• Some state that the maximum age limit at the end of the mortgage term is the age at which you will retire
• Others have no specified maximum age limit, though you would still be required to prove you can afford your mortgage for the full term. These lenders may also allow you to extend your mortgage term to 90 or older.

Options for over 60s and 70s

If you’re under 55 when you apply to remortgage, you’ll have plenty of lenders. Securing remortgages becomes increasingly challenging for individuals over 55 with each passing year, but mortgages for those over 60 and over 65 remain relatively accessible.

A mortgage broker can save you a lot of time by helping you identify which lenders will consider your remortgage application if you’re in this age bracket.

How to remortgage when you’ve retired

Remortgaging when you’ve retired doesn’t necessarily need to be any more complex than if you were still working, and you can make the process a lot more straightforward by following a few simple steps.

First, enquire, and we’ll arrange for a specialist remortgage broker to get in touch who can help with the following:

• Working out your current equity position and loan-to-value
• Guidance on what documentary evidence is required – total pension income, etc. – so you can be fully prepared before submitting your remortgage application
• Downloading and optimising your credit reports to spot any inaccuracies or outdated information which could hinder your chances of success
• Finding the best mortgage lenders who have previous experience arranging remortgages for people in retirement

Calculate how much you could borrow.

You can use the remortgage calculator below to understand how much you can borrow by remortgaging based on your (and your partner’s, if you have a joint mortgage) income from your State Pension, private pension, and/or company pension.

If you have other pension types, you can try adding them to see how much you could borrow from the right lender.

Lenders and eligibility

Each lender has slightly different eligibility requirements for applicants who have retired, so (without a broker) it’s difficult to know which you have the best chance of success with.

Here are some of the most popular lenders with some details of their requirements.

• Halifax: The maximum age at the end of the mortgage term is 80. Annuity income will be considered, but drawdown pension and SIPP income will not.
• Barclays: The maximum age is 70 or the age you retire if this is earlier. Applications from older people with evidence of sufficient income are considered. Annuity income will be considered. SIPP income will not be considered.
• Nationwide: The maximum age at the end of the mortgage term is 75. Annuity income will be considered, but drawdown pension income will not.
• NatWest: has a maximum age of 72 at the time of application. Annuity income and SIPP income will be considered. Drawdown pension income will not be considered.
• Santander: The maximum age at the time of application is 69, except for existing customers looking to borrow the same or less. Annuity income, drawdown pension, and SIPP income will be considered.
• HSBC: has different maximum ages for different mortgage types. Annuity income, drawdown pension, and SIPP income will be considered.

Alternatives to remortgaging

If your age or circumstances make it difficult to remortgage, you still have options that will provide you with cash based on the value of your home. The following two options are easier to qualify for as there is less to pay each month (or nothing).

Lifetime mortgages

A lifetime mortgage is a type of loan that you can secure on your house with no repayments in your lifetime. It is repaid (along with interest and fees) after you die or move into long-term care. It’s available to people over 60 who own 100% of their homes.

Find out how much cash you can borrow with a lifetime mortgage with an equity release calculator.

Retirement interest-only mortgages

A retirement interest-only mortgage is another loan you can secure on your house. Each month, you’ll pay the interest on the loan. The loan capital is repaid when the property is sold (usually after you die). It’s available to people who have retired. You don’t need to own 100% of your home, as it can be used to pay off an existing mortgage.

Speak to a broker experienced in remortgages for the retired

If you have any questions about remortgaging in retirement (or at any point after age 55), you can get the answers you need by speaking to a broker. It’s best to find one who specialises in mortgages for people in your age group.

We offer a broker-matching service that can connect you with an expert who works with older applicants. You’ll connect for a free, no-obligation chat before moving forward with an application. To try out our service, just call 0330 818 7026 or make an enquiry online.