Mortgage choices for the over-60s

If you decide to take out a mortgage in your 60s, or older, you will have to make the same choices as a younger borrower.

But the decisions you reach could well be different. Here are the things you will need to think about

• The amount

This will depend on a combination of factors, including the value of your property, what you can afford to repay, and what your mortgage lender is willing to lend you.

Unless you have a very high level of disposable income, lenders are more likely to consider you if you ask for a relatively low proportion of your property's value.

For more on this, go to How much can I borrow?

• The term

If you are only just 60, you might find a handful of lenders willing to offer you a traditional 25-year mortgage term.

If you are 65, you might be able to borrow over 15 to 20 years.

But if you are 70 or above, you may have to accept a term of 10 years or less.

To find out more, read What mortgage term should I choose?

• The type of mortgage

You can opt for a repayment mortgage (also known as a capital and interest mortgage) or an Interest-only mortgage.

Generally, it's better to choose repayment, but if you are willing to sell up and downsize to clear your loan at the end of the term, an interest-only deal would have the advantage of lower monthly repayments.

For more on this, visit Should I choose repayment or interest-only?

• The type of interest deal

Most people go for a fixed-rate or a discounted variable interest deal although there are other options. (See our A-Z of all UK mortgage types.)

To help you decide, read Should I go for a fix or a discount?

• The length of the deal

Fixes and discounts can last for anything from a few months to your full mortgage term, but deals lasting two to five years are most popular.

To find out more, see What length of Mortgage deal should I choose?

• The lender

To find a lender willing to consider your circumstances, contact a mortgage broker or an IFA (independent financial adviser).

To help you make the choice, go to Finding your mortgage.

To read more on this subject please see the list below or your mortgage guide or your home buying guide

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