Can I apply for a mortgage in retirement?
Home-buying trends and the challenges that retirees face when purchasing a home can change, adapting to shifting retirement ages. If you’re retired or close to retirement, you may be thinking about buying a home for one of a number of reasons, including remortgaging, moving elsewhere, buying to let, downsizing your home or helping out your children or grandchildren to buy a property of their own.
Anyone applying for a mortgage is typically assessed to see if they’re able to afford the loan repayments and to repay them on time. Among the criteria that lenders typically look at when assessing a mortgage application is your income. Just because you’ve retired and no longer have a steady stream of income doesn’t mean that you’re automatically disqualified. Some lenders are willing to accept applications from applicants over the age of 65, according to this article from August 2016. It’s likely that you’ll still have to prove that you’ll receive funds regularly, such as from your pension.
If you’re thinking about applying for a mortgage in retirement, you may want to consider speaking to your family and friends first, as they may have useful ideas of suggestions to help with your purchase or living situation. You may also want to consult with an independent financial adviser to see if your getting a mortgage may impact your finances in other ways, for example, when it comes to taxes, benefits or investments.
If you’re considering applying for a mortgage, you may want to check your Equifax Credit Report and Score first. It’s free for the first 30 days then £7.95 monthly, and gives you unlimited online access to your borrowing history, as well as your credit score, which provides you with an indication of how creditworthy a lender may find you.
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