Aldermore offers mortgages to the over-80s

Stephanie Hawthorne
15 May 2018

Older borrowers looking for a mortgage deal will have more choice now that Aldermore has entered the later-life market. 

The challenger bank has extended its mortgage offering to applicants with a range of products aimed at borrowers aged between 55 and 85. Previously, the maximum age limit was 70.

The new mortgages are available both for purchases and remortgages and will also help hard-pressed borrowers nearing the end of their term on interest-only mortgages.

The new range will feature two-, three-, five- and 10-year fixed-rate mortgages, as well as a variable option. There will be no limit on overpayments and no early repayment charges on the variable product. On the 10-year fixed-rate product, no early repayment changes will be applicable after five years. 

Potentially, some mortgage holders could finish paying off their mortgage when they are 99 years old as at age 85 the maximum term of the later life product is 14 years.

Aldermore will assess affordability on the income at the outset of the loan (if the borrower has not already retired) and actual or anticipated retirement income, with the lowest outcome determining the maximum loan amount.

To qualify, borrowers must have at least 25% equity in their homes for repayment loans and 40% equity for interest-only loans.  The maximum loan size is £400,000 with up to 75% loan to value (LTV) for capital repayment and up 60% LTV for interest-only. Interest rates vary from 3.38% for a two-year fixed (initial rate) with a LTV of 60% to 4.28% for a 10-year fix with 75% LTV.

If borrowers want to use the sale of their property as their repayment strategy, then they need to have at least £300,000 minimum equity in their property if their home is in London and the South East or a minimum of £175,000 equity if it is elsewhere in the UK.

Charles McDowell, Aldermore’s commercial director of mortgages, comments: “We can consider each case on an individual basis, ensuring we can give the customer the support they need. With our new Later Life Lending proposition, we truly believe we can help more people with their borrowing needs, empowering them to live the life they want in retirement.”  

The product will be available initially through four designated partners - OpenWork, AToM, Personal Touch Financial Services (PTFS) and Finance Planning, all of which worked with Aldermore to develop this proposition.

Commenting on the product, David Hollingworth, associate director at L&C Mortgages (London & Country), says: “Older borrowers have found the tighter lender criteria has resulted in many lenders imposing maximum age caps that can effectively limit their options or leave them feeling excluded altogether.

“There has been some shift in lender approach more recently, and some of the smaller building societies have been more flexible for some time when it comes to older borrowers.  Aldermore’s move to offer a range for over-55s is, therefore, welcome and offers the chance for the mortgage to be taken up to a maximum age of 99 at the end of the mortgage term. 

“This will help to enhance the choice for those older borrowers who can afford to use a standard mortgage product and perhaps prefer that to the roll-up options of more traditional equity release products.”


Aldermore product information
Maximum loan size£400,000 
Maximum LTV60%75%
PurposePurchase and remortgage 
Two-year fixed (initial rate)3.38%3.68%
Three-year fixed (initial rate)3.58%3.88%
Five-year fixed (initial rate)3.68%3.98%
10-year fixed (initial rate)3.98%4.28%
Product fee£999 
Reversion rate4.98%5.48%
 AMR*+ 0.00%AMR*+ 0.50

Note: "AMR is the Aldermore Managed Rate, which is set by Aldermore.


In reply to by anonymous_stub (not verified)

My wife and I wish to move back to the U.K. from France. However property is more expensive in the U.K. and though we have a deposit of £165000 we might need a mortgage of between £40000 and 50000. We are both in our seventies. Any advice?

In reply to by Emlyn Williams (not verified)

My wife and l are in similar circumstances to the above enquiry, please forward advice responses.

In reply to by anonymous_stub (not verified)

I wish to take out a 100% mortgage for £140.000.My income is £58.500 before tax.I will retain £40.000, from the sale of my current property.After the pay ment of all sale and legal costs, the balance will be shared among my children.My property is for sale at £425.000..I would like a 10 year term.~~~~~~~~~~~~~~~~~~~~~~~~~~

In reply to by anonymous_stub (not verified)

I would like to read answers to the questions posted . Most of these answers will be helpful in selecting the option that will be best suited to my requirements. I am 78 an my wife is 67. We have an interest only mortgage. £97K term ending in three and a half years.

In reply to by anonymous_stub (not verified)

I am 68 retired and I would like to know if there is any way I can get a mortgage that extends to maybe 90 as we are living longer these days or maybe interest only payable on death. Thank you

In reply to by anonymous_stub (not verified)

I am 87 years old and own my own bungalow valued at approximately £300,000. I have no mortgage on it but would like to obtain a 4/5 year mortgage and wonder if you can assist.

In reply to by anonymous_stub (not verified)

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In reply to by anonymous_stub (not verified)

Am 83 need £40k Dec to pay off interest only mortgage.

In reply to by anonymous_stub (not verified)

I am over 80 and my wife is 78. We want to remortgage our mortgage,£20000 owing with 31/2 yrs left.We want to extensive the mortgage to reduce our payments.

In reply to by anonymous_stub (not verified)

Now aged 79 what type of mortgage can i get and how many years could i have it over Michael Willison

interest only mortgage

I am an 80year old widower in good health and wish to take out an interest only mortgage on my current residence i North Yorkshire which was valued at £285,000 four years ago.

Iintrestfree mortgage

Hoping to move to £650000 property and require £A £215000 intrestfree mortgage



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