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Lifetime Mortgage for Over 60s – In-depth Guide

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Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

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Janine
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Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Feb 7th, 2024
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25000

In partnership with Age Partnership.

Our preferred equity release adviser is Age Partnership. For free and impartial money advice you can visit MoneyHelper.

Featured in...
lifetime mortgage over 60s

Our preferred equity release adviser is Age Partnership. For free and impartial money advice you can visit MoneyHelper.

Are you curious about lifetime mortgages for over 60s? This guide is here to help! We know that a lot of people have questions about this. In fact, more than 7,000 people come to our website each month for advice on things like equity release and lifetime mortgages.

In this guide, we’ll look at:

  • The meaning of a lifetime mortgage.
  • How a lifetime mortgage works.
  • The good and bad points of a lifetime mortgage.
  • How to get a lifetime mortgage.
  • What happens when a lifetime mortgage ends.

We know that thinking about retirement and mortgages can be hard. It can feel like a maze with no clear path. But you’re not alone – we’re here to guide you through it with easy-to-understand advice.

Ready to learn about lifetime mortgages together? Let’s dive in!

Find out how much equity you could release by answering below.

Find out how much equity you could release by answering below.

25000

In partnership with Age Partnership.

Is it possible to get a lifetime mortgage for over 60s?

lifetime mortgage for over 60

Yes, lifetime mortgages are generally available to people over the age of 55. There are minimal lenders who apply a slightly higher age restriction of 60 years old. 

If there are two homeowners who want to take out a lifetime mortgage together, then both people will need to be over 55 years old. 

It’s quite common for people to get a lifetime mortgage when they’re over 60. 

What is a lifetime mortgage for over 60s?

A lifetime mortgage for over 60s is the same as a lifetime mortgage for people of other ages. It works in the same way as explained earlier in this MoneyNerd guide. 

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One thing to note is that your age could affect the amount of equity you can release. Someone taking out a lifetime mortgage at 60 will usually be allowed to access a greater percentage of their equity than someone taking out one of these loans at 55. 

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Why should over 60s consider a lifetime mortgage?

Over 60s should only consider a lifetime mortgage after receiving equity release advice. An advisor will explore alternative options and make you aware of the long-term consequences of using a lifetime mortgage. 

It has even become mandatory to receive equity release advice as part of the process. 

What is the maximum age for a lifetime mortgage?

Many lifetime mortgage companies don’t impose an upper age limit on applying for their plans

However, some lenders might apply an upper age limit, which is usually set at around 85, 90 or even 100 years old. 

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The pros of a lifetime mortgage for over 60s

The advantages of using a lifetime mortgage are:

  1. You receive a loan as a lump sum or drawdown
  2. The loan comes with no monthly repayments
  3. You can use the money as you need
  4. You might only repay after you pass away

The downside of a lifetime mortgage for over 60s

The downside of a lifetime mortgage is that it can become expensive to repay.

For example, a £65,000 lifetime mortgage would become a debt close to £137,000 if you held the loan for 12 years on a compounding equity release interest rate of 6.4%.

This may not be an issue for you. But if you have loved ones relying on an inheritance to make themselves financially comfortable, it could be an issue.  

How long does a lifetime mortgage take to be approved?

The standard timeframe to get a lifetime mortgage approved is between three and eight weeks. 

The process includes a number of important steps, which you can read about here

Mortgages for over 60s – what are the options?
Over 60s will often struggle to take out a residential mortgage due to their age and limited remaining working lifespan. They might be able to take out a retirement interest-only (RIO) mortgage. The only other “mortgage” available to people over 60 is a lifetime mortgage, but this isn’t used to purchase a property.
Can over 60s get an interest-only mortgage?
Over 60s may be approved for a retirement interest-only mortgage to help buy a property. If the over 60 is already a homeowner and wants to release equity, they could also consider an interest-only lifetime mortgage. This is just like a lifetime mortgage but you volunteer to repay the interest each month to stop the debt from growing.
Can over 60s get a home reversion plan?
Home reversion plans are the other method of equity release for seniors. However, the minimum age requirement on these loans is usually 65. So if you’re between 55 and 64, the only equity release option for you will be a lifetime mortgage.
Find out how much equity you could release by answering below.

Find out how much equity you could release by answering below.

25000

In partnership with Age Partnership.

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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Financial Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.