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Mortgage Success | Over 50s – Self-Employed and First Time Buyers

Mortgage Success

Mortgage Success


Life is undoubtedly filled with challenges, and our industry is no exception. These challenges are opportunities to remain vigilant and offer solutions to those who require them the most. There’s a well-known saying that “trouble comes in threes.” In today’s article, we aim to address this theory by exploring the process of securing a mortgage if you happen to fall into one of these categories: being over 50, self-employed, or a first-time buyer.

Contrary to differing opinions, applying for a mortgage is a significant and thrilling step, whether it’s your first time or you’ve been through the process multiple times. However, for individuals who are over 50 or self-employed, the prospect of obtaining a mortgage can feel disconcerting. In particular, older borrowers and those with non-traditional employment arrangements often encounter additional challenges when seeking mortgage approval, making the process somewhat more complex.

The encouraging news is that a wide range of options are available to you. In this guide, we’ll provide you with all the essential information you need to understand the process of securing a first-time buyer mortgage and increasing your chances of approval, particularly if you’re over 50 or self-employed.


Can you secure a mortgage if you’re over 50? 


It’s not unexpected to observe a significant threefold increase in life expectancy throughout the course of human history. The government has taken measures to adapt to this extended lifespan by raising the retirement age. Presently, the State Pension age stands at 66 for both women and men. However, for individuals born after April 5, 1960, there is a gradual progression towards raising the State Pension age to 67 and ultimately 68. Consequently, this shift in retirement age has led lenders to adjust their criteria.

Several lenders typically set an age limit ranging from 65 to 70 years, but they may consider extending the mortgage into the retirement years if the borrower’s financial situation allows for it. As you advance in age, your options with lenders may become somewhat restricted. However, some lenders are willing to set the age cap at 75, and a few even go as far as 80, provided that applicants meet the necessary eligibility criteria.

That said, mortgages tailored for individuals aged 50 and above are indeed accessible. Fortunately, if you’re in your early 50s and eligible for a standard 25-year mortgage, you’ll still have a range of options and flexibility to explore.

One advantageous factor typically working in your favour as someone over 50 is that your income typically peaks during this period. You are likely to have already become a homeowner with a property with accumulated equity, or you may possess sufficient savings to provide a substantial deposit.

Many individuals in this stage of life contemplate downsizing their family homes as their children move out. This move to a smaller property can reduce mortgage expenses. In either scenario, you should discover that the mortgage application process is generally straightforward, provided you maintain a reasonable credit score.

However, the situation may become more complex if you’re over 50 and aiming to obtain your first mortgage. This complexity arises primarily because there’s a possibility you’ll retire before fully paying off the mortgage. Retirement means you may no longer receive a regular salary or be on a reduced income, which can cause lenders to question your ability to meet mortgage repayments.

Lenders must adhere to the Mortgage Market Review (MMR) regulations, which require them to ensure that they can manage mortgage payments throughout the entire mortgage term. Consequently, although obtaining a mortgage in such circumstances might still be feasible, lenders will view you as a higher risk.


What is the age limit to get a mortgage? 


Is there a specific age restriction when it comes to obtaining a mortgage? Generally, the minimum age for securing a residential mortgage is typically set at 18 years or 21 years if you’re pursuing a buy-to-let mortgage. While there isn’t a strict upper age limit for mortgage applicants, individual lenders establish their own criteria. These criteria often entail maximum mortgage eligibility ages, typically between 65 and 80 years.

Furthermore, it’s important to note that many lenders stipulate that the mortgage term must conclude when you reach a certain age, typically from 70 to 85 years or upon your retirement, depending on which milestone occurs sooner.

As you explore mortgage options, it’s crucial to understand these age-related considerations and the varying policies adopted by lenders. Additionally, remember that your ability to secure a mortgage as you age may hinge on factors such as income, financial stability, and creditworthiness.



Applying for a 50+ mortgage


Securing a mortgage when you’re over 50 can present its own set of considerations. Here are some strategies to enhance your prospects of mortgage approval in this phase of life:


  • Amass a Substantial Deposit: Lenders often find comfort in substantial deposits. A sizable deposit demonstrates your commitment and reduces the risk for the lender since you’ll be borrowing a smaller amount. Endeavour to gather as significant a deposit as is practical for you or consider utilising any equity you’ve accrued from selling your current property. This approach holds particular importance if you’re contemplating a relatively short-term mortgage, such as one spanning 10 years. = Mortgage Success


  • Opt for a Shorter Mortgage Term: Once you reach 50, lenders tend to consider your retirement, even if it’s still 15-20 years away. Opting for a shorter-term mortgage with repayment schedules spanning 10-15 years can heighten your chances of approval. This choice aligns with having your final mortgage payment made either before or shortly after your retirement. = Mortgage Success


  • Maintain a Strong Credit Profile: A robust credit history is paramount when seeking mortgage approval at any age. Ensure your credit score remains healthy by managing debts responsibly, making timely payments, and correcting any errors in your credit report. = Mortgage Success


  • Demonstrate Steady Income: Lenders value stable income streams. If you’re still working, highlight your consistent earnings and job security. For retirees, showcase your pension, investments, and other income sources supporting mortgage payments. = Mortgage Success


  • Seek Professional Advice: Consulting with a financial advisor or mortgage broker experienced in catering to individuals over 50 can provide valuable insights and help you navigate the complexities of securing a mortgage at this stage of life. = Mortgage Success


  • Consider Specialised Lenders: Some lenders offer mortgages tailored to older borrowers. Exploring these options may lead to more accommodating terms and conditions that align with your unique circumstances. = Mortgage Success


Remember that each mortgage application is subject to the lender’s specific criteria and policies, so it’s advisable to explore various options and seek professional guidance to find the most suitable mortgage arrangement for your needs and financial situation.


I’m self-employed. Can I get a mortgage? 


Indeed, being self-employed doesn’t preclude you from obtaining a mortgage, and you should have access to a similar range of mortgage options as those in full-time employment. However, some considerations must be remembered, as proving your income can be more challenging. To enhance your chances of mortgage approval as a self-employed individual, you typically need to provide evidence of a stable and reliable income. This may involve providing the following documents:


  • Two or More Years’ Certified Accounts: Most lenders will require at least two years of certified business or self-employment accounts to assess your income stability and profitability. A qualified accountant or tax professional should prepare these documents. = Mortgage Success
  • SA302 Forms or Tax Year Overviews: You will likely need to provide SA302 forms or tax year overviews from HMRC (Her Majesty’s Revenue and Customs) for the past two or three tax years. These documents confirm your income and tax paid to the government. = Mortgage Success
  • Bank Statements: Lenders may request bank statements to verify your income and financial stability. = Mortgage Success
  • Credit History: Maintain a healthy credit history, as lenders consider your creditworthiness when evaluating your mortgage application. = Mortgage Success
  • Deposit: Like all mortgage applicants, having a substantial deposit can strengthen your application. = Mortgage Success


It’s important to note that different lenders may have varying requirements and criteria for self-employed borrowers. Working with a mortgage broker specialising in self-employed applicants can be beneficial, as they can help you navigate the process, find suitable lenders, and present your financial information in the best possible light.

While obtaining a mortgage as a self-employed individual may require more documentation and effort, it is undoubtedly attainable with proper financial planning and preparation.


I’m a first-time buyer. Can I get a mortgage? 


Indeed, as a prospective first-time buyer, you may wonder about your mortgage eligibility. Let’s delve deeper into this topic to provide you with a comprehensive understanding of what’s involved.

Getting Your Foot on the Property Ladder: Embarking on the homeownership journey often commences with first-time buyers. This crucial step signifies the beginning of your venture into the property market, and it’s worth noting that there will consistently be a demand for mortgages tailored to first-time buyers.

Eligibility for First-Time Buyer Mortgages: Securing a mortgage as a first-time buyer is indeed a feasible goal. Lenders recognise the significance of this market segment and offer specialised mortgage products to accommodate your needs. To enhance your chances of mortgage approval, consider the following factors: Blissful 1st Homes Scheme


  • Creditworthiness: Maintain a healthy credit history by managing your debts responsibly and making timely payments. A strong credit profile will bolster your eligibility for favourable mortgage terms. = Mortgage Success
  • Financial Preparation: Assess your financial readiness by reviewing your income, expenses, and savings. It’s beneficial to clearly understand your budget and how much you can comfortably allocate toward mortgage payments. = Mortgage Success
  • Deposit: Accumulate a deposit for your future home. While there are mortgage options with lower deposit requirements, having a substantial deposit can provide you with more favourable terms and lower interest rates. = Mortgage Success
  • Mortgage Affordability: Lenders assess your ability to afford a mortgage by considering your income, employment stability, and existing financial commitments. Demonstrating a steady income and responsible financial management can enhance your eligibility. = Mortgage Success
  • Consult a Mortgage Adviser: Seeking guidance from a mortgage adviser or broker experienced in serving first-time buyers can be invaluable. They can navigate the intricacies of the mortgage application process, help you understand your options, and assist in finding the most suitable mortgage product for your circumstances. = Mortgage Success
  • Research and Preparation: Conduct thorough research to familiarise yourself with the mortgage market. Understand the different types of mortgages, interest rates, and terms available. Being well-informed will empower you to make informed decisions. = Mortgage Success


Remember that the path to homeownership as a first-time buyer is achievable with proper planning, financial responsibility, and guidance. Each step you take brings you closer to the goal of owning your first home, and resources and professionals are available to support you throughout the process.


Getting the mortgage that suits you


Finding the right mortgage tailored to your unique circumstances is paramount, regardless of whether you’re a first-time buyer, approaching or past the age of 50, self-employed, or employed full-time. At Connect Mortgages, our dedication is to assist you in navigating the complex landscape of mortgage options, ensuring you make an informed and confident choice that perfectly suits your financial requirements.

Data Performance

  • Our Expertise: With our team of experienced mortgage advisers, we bring a wealth of knowledge and industry expertise to the table. Our goal is to simplify the mortgage selection process, making it accessible and understandable for every type of borrower. = Mortgage Success


  • Tailored Solutions:  We recognise that no two individuals are the same, so your mortgage needs may differ significantly from others. Whether you’re embarking on your first homeownership journey, planning for retirement, working independently, or working full-time, we’re here to craft a mortgage solution that aligns precisely with your goals and financial situation. = Mortgage Success


  • Comprehensive Guidance:  We go beyond simply offering mortgage products. Our approach involves comprehensive guidance, ensuring you understand the intricacies of each mortgage option, interest rates, repayment terms, and eligibility criteria. We aim to empower you with knowledge to make informed decisions. = Mortgage Success


  • Streamlined Process:  Navigating the mortgage market can be complex, but you can expect a streamlined process with Connect Mortgages. We handle the legwork, assist with paperwork, and liaise with lenders on your behalf, making the mortgage application process as seamless as possible. = Mortgage Success


  • Accessibility: No matter where you are in your homeownership journey or your unique circumstances, our services are accessible to all. We’re here to support you whether you’re just beginning to explore mortgage options or seeking refinancing opportunities. = Mortgage Success


  • Your Mortgage, Your Confidence:  Your confidence in your mortgage choice is our ultimate goal. We strive to empower you with the knowledge and resources needed to secure a mortgage that suits your present needs and aligns with your long-term financial objectives. = Mortgage Success


At Connect Mortgages, our unwavering commitment is to assist you in discovering the ideal mortgage solution tailored precisely to your individual circumstances. We understand that your financial journey is distinctive, and our mission is to ensure that your chosen mortgage aligns perfectly with your uniqueness. Connect Mortgages

Our ultimate goal is to offer you the peace of mind and financial security you rightfully deserve. Rest assured, we are here to guide you every step of the way on this personalised path to mortgage success.

In summary, regardless of whether you’re over 50, self-employed, or a first-time buyer, we are here to provide you with tailored mortgage solutions that align with your specific needs and financial circumstances. Our experienced team at Connect Mortgages is dedicated to simplifying the complex world of mortgages, ensuring that you make well-informed decisions that lead to financial security and confidence in your homeownership journey.

No matter where you are in life or your background, our comprehensive guidance, streamlined processes, and commitment to your financial well-being are here to support you. We recognise that each individual’s financial journey is unique, and our mission is to empower you with the knowledge and resources necessary to achieve your mortgage goals.

With Connect Mortgages, you can trust that your mortgage choice will reflect your distinct circumstances and aspirations, providing you with the peace of mind you deserve as you embark on your homeownership journey.


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Liz Syms


About the Author

Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.

About the Author

Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.


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