Can the over 60s still have a mortgage in retirement?

Can the over 60s still have a mortgage in retirement?

Traditionally mortgages were given on the basis that they would be repaid over time through an individual or a couple’s income. However in a time of age-discrimination legislation being enforced and also a changing financial situation lenders are now increasingly willing to offer mortgages to people in their 60’s and older.

Obviously it is preferable that monthly outgoings are reduced during retirement as generally monthly income has reduced with retirees no longer earning a salary and having to live off pension plans. However it can also be a time of financial stress and some people may feel that a mortgage offers a way of relieving some of this financial stress rather than having to seek financial assistance from family members who may also be struggling in the current economic climate.

A mortgage will require monthly repayments. With a plan such as the Halifax Retirement Mortgage this will only need to cover interest and so may be an affordable option for retirees. It is essentially an interest-only mortgage which is only paid off upon either the death of the policy holder or their being placed into a care facility.

There are also other options available such as downsizing of family property or equity release schemes however they also should not be entered into lightly but rather discussed as alternatives to a mortgage.

As with any mortgages it is always advisable to seek independent financial advice before committing to anything. For people who are entering retirement it may also be a good idea to speak to somebody at the Citizen’s Advice Bureau or Consumer Credit Counselling Services as they are best placed to offer advice on your rights and also other options available to you.

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