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I’m Too Old for Property Finance!


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Living as a pensioner with a great deal of equity tied up in your estate represents the ultimate catch-22 situation. You may be sitting on a small fortune in combined assets, but this doesn’t mean you’ll be lent a hand when in need of financial support.

Or at least, not by the vast majority of major lenders.

The Problem with Property Finance for Pensioners

In a typical scenario, you may own a house worth more than £1 million, land with a market value of £300,000 and plenty more besides. You’re 72 years old and have an average annual income of around £35,000. You’ve got your eye on a £700,000 property you’d like to buy and move into – you’ve even got around £200,000 available in cash.

Unfortunately, the only two things the average High Street lender is interested in are your age and your income. A 72-year-old application with a £35k per-year income not coming close to satisfying the qualification criteria for this kind of residential mortgage.

Exploring the Alternatives

On paper, the figures above simply don’t add up. After all, if the prospective borrower owns multiple assets that vastly exceed to cost of the loan, why wouldn’t they qualify for an affordable mortgage?

This is just one example to illustrate the problems inherent with property finance for pensioners. Not to mention, the importance of looking beyond the High Street to explore the alternative options available.

Even if such a candidate were able to qualify for a mortgage, they’d almost certainly be ‘penalised’ with elevated interest rates and higher overall borrowing costs. This, despite their incredibly strong financial position and wealth. In order to avoid paying over the odds unnecessarily, such cases should be taken directly to the doors of specialist lenders.

Bridging Loans for Over 65s

In instances like these, conventional mortgages are not the only option. Neither are they the most accessible, affordable or convenient option. When sitting on this kind of equity, there’s nothing to gain by complicating things with long and drawn-out mortgages. Or for that matter, wasting time on applications guaranteed to be rejected.

As an alternative, bridging loans represent a fast, flexible and affordable way to borrow substantial amounts of money on the basis of collateral. For pensioners in particular, bridging loans can offer a welcome lifeline for covering short-term gaps in their financial dealings.

In this particular scenario, the individual in question could use their current property to secure the funds needed to buy their new home. Bridging loans are typically available up to a maximum of 75% of the property’s value, meaning around £750,000 accessible for the applicant. The new home is purchased, the buyer’s previous home is sold a little further down the line and the bridging loan is repaid in one lump-sum payment.

As an alternative, bridging loans represent a fast, flexible and affordable way to borrow substantial amounts of money on the basis of collateral. For pensioners in particular, bridging loans can offer a welcome lifeline for covering short-term gaps in their financial dealings.

In this particular scenario, the individual in question could use their current property to secure the funds needed to buy their new home. Bridging loans are typically available up to a maximum of 75% of the property’s value, meaning around £750,000 accessible for the applicant. The new home is purchased, the buyer’s previous home is sold a little further down the line and the bridging loan is repaid in one lump-sum payment.

Comparing Bridging Loans for Pensioners

Due to the specialist nature of bridging loans for pensioners, it pays to work with a specialist broker. Consult with an independent specialist and organise a whole-of-market comparison, incorporating dozens of dynamic lenders beyond the UK High Street.

It can also be helpful to use an online bridging loans calculator, in order to get a good idea of the various options available.

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The advice and processing on all financial products introduced via this website will be handled by UK Property Finance Ltd, which is authorised by The Financial Conduct Authority (FCA) no 667602. The FCA do not regulate all mortgages such as Buy to Let and Commercial. Think Carefully before securing debts against your home. Your property could be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

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