Although there are over half a million people in the UK over the age of 90, many traditional lenders are not comfortable offering borrowing into retirement. We believe that retirement, or pre-tirement, should not be a precursor to being cut off from the financial sector. We regularly hear of situations where mortgage loans for retired seniors are refused even though they are downsizing. The simple fact is that traditional mortgage lenders are very cautious about borrowing in retirement where there may be a lack of steady income.
Can I have a mortgage in retirement?
Even though many lenders in the UK, and indeed internationally, have yet to catch up with extended life expectancy, we have access to specialist lenders. You can effectively borrow from your pension plan as this can create a long-term reliable income stream. There may also be the opportunity to withdraw lump sum pension payments further down the line or even dispose of additional asset you may hold. While many may tell you otherwise, loans for retired seniors are out there, they are available but as a retirement mortgage broker expert, here at Enness, we can unlock these for you.
Buying a home after retirement
As an independent operation, Enness have access to a whole range of different lenders across many different specialist sectors. While it is unfortunate that many mortgage lenders are unwilling to deal with those in retirement, we have access to the full range of those who do. There are still various issues to take into consideration such as:-
- Income streams – this may be private pension income or savings which can be used to fund mortgage payments
- Credit score – as with any mortgage application, the credit score of the applicants will be an important consideration
- Ability to repay the outstanding mortgage – there are various ways in which to demonstrate an ability to repay an outstanding mortgage in the event of unforeseen circumstances
On the surface, the above issues can seem quite daunting and sometimes challenging without expert assistance. We have arranged many mortgages for those in retirement, using our experience and contacts to tweak and improve on stand-alone terms. The mortgage lenders we deal with are not blinkered to income streams alone, they are willing to consider assets and savings as effective collateral. The greater the security offered in terms of outstanding mortgage lending the more attractive the terms.
Securing finance in retirement
Whether you are looking to downsize, remortgage your property or even look at refinancing your current debt, we can help. There may be a relatively small worldwide pool of mortgage lenders willing to look towards the retirement market, but we have access to them all. Banks, building societies, private banks and specialist lenders are all part of our contact network with our reputation opening doors.
We have experience dealing with older borrowers and can advise on income streams and ways in which to fully utilising existing assets. Rest assured, we will leave no stone unturned in our pursuit of a bespoke finance package for you. If you would like to chat through the options and discuss your specific circumstances, please feel free to give us a call with no obligation.
