By Samuel Mather-Holgate

🔑 Key Takeaways

• Getting a mortgage at 65 is possible — but depends on income and term length
• The biggest barriers are affordability and age limits, not the property itself
• The Right to Buy discount can often act as the deposit
• Equity release may be an option, but only with careful advice
• Family support can work — but needs to be structured properly

A simple guide to Right to Buy, mortgages and family options

For many people, the Right to Buy scheme is a once-in-a-lifetime opportunity.

And sometimes the numbers are so compelling, it almost feels too good to miss.

Take this example:

• Market value: £180,000
• Right to Buy discount: £100,000
• Purchase price: £80,000

You are effectively buying a property at less than half its value.

But the big question is:

👉 Can you actually get a mortgage at 65?
👉 And if not, what are your options?

As financial advisers and mortgage advisers in Swindon, Cirencester and Bristol, this is something we see more often than you might think.

Let’s break it down simply.

❓ Can You Get a Mortgage at 65?

Yes — but it’s not as straightforward as it is at 35.

Lenders will look at:

1. Income (this is the big one)

• Pension income
• Any employment income
• Investment income

👉 If the income isn’t strong enough, this is usually where applications fail.

2. Mortgage term

Most lenders want the mortgage repaid by age:

• 75
• 80
• sometimes 85 (with specialist lenders)

So at age 65:

• A 10–20 year term is typical
• Shorter term = higher monthly payments

3. Affordability

Even though the purchase price is only £80,000…

👉 Lenders still assess whether you can afford the repayments.

💷 What Might the Mortgage Look Like?

Let’s assume:

• Loan: £80,000
• Term: 15 years
• Interest rate: ~6% (typical for this type of lending)

Monthly repayments (repayment mortgage):

👉 Around £675–£700 per month

Interest-only option (if available):

👉 Around £400 per month

…but you would still need a plan to repay the £80,000 later.

⚠️ What Might Stop You Getting a Mortgage?

This is where many applications fall down.

🚫 Low income

If pension income is modest, lenders may say no.

🚫 Short term = high payments

At 65, the term is shorter → payments are higher → affordability tighter.

🚫 Credit history

Missed payments or existing debt can reduce options.

🚫 Lender criteria

Some lenders simply won’t lend beyond certain ages.

🔄 Are There Ways Around This?

Yes — and this is where proper mortgage advice in Swindon, Cirencester or Bristol becomes crucial.

🟢 Option 1: Use the Right to Buy Discount as a Deposit

Most lenders will allow:

👉 The £100,000 discount to act as the deposit

So:

• You don’t need savings
• You’re effectively borrowing against equity from day one

This is often the best-case scenario if income supports it.

🟡 Option 2: Joint Mortgage with Family

A child or family member could:

• Go on the mortgage
• Boost affordability
• Help secure approval

But:

👉 This means they are legally responsible for the mortgage

This needs careful thought.

🟣 Option 3: Family Gifting the Money

This is often the simplest solution — if it’s possible.

For example:

• Family provides £80,000
• Property is purchased outright
• No mortgage needed

Given the property is worth £180,000:

👉 The family is effectively “buying” £180k for £80k

⚠️ Important considerations:

• It is a gift, not a loan (for most lenders)
• Potential inheritance tax implications
• Family dynamics (always worth discussing openly)

🔵 Option 4: Equity Release (Lifetime Mortgage)

This is where things get more specialist.

A lifetime mortgage allows you to:

• Borrow against the property
• Make no monthly payments (optional)
• Interest rolls up over time

Could this work here?

Possibly — but:

👉 Most lenders want you to already own the property

So equity release is usually:

• a later-stage solution, not always for purchase

Example:

• Borrow £80,000 via equity release
• Interest rate ~6.5–7%
• No monthly payments

After 10–15 years:

👉 The loan could grow significantly due to compound interest

This is where advice is critical

Equity release can be powerful…

…but it needs to be:

• fully understood
• carefully structured
• part of a long-term plan

👨‍👩‍👧 What Do Families Often Do in This Situation?

In reality, we often see a blend:

• Small mortgage + family support
• Joint borrower arrangements
• Outright purchase using family funds

Because the opportunity is so strong:

👉 Buying a £180,000 home for £80,000 is hard to ignore.

📍 Why Advice Matters Here

This is not a standard mortgage case.

You’re dealing with:

• Age-based lending criteria
• Government schemes
• Family involvement
• Long-term planning
• Potential inheritance considerations

As a financial adviser and mortgage adviser in Swindon, Cirencester and Bristol, this is exactly where tailored advice makes a difference.

💬 Final Thought

The Right to Buy scheme can be life-changing.

But the question isn’t just:

👉 “Can we do this?”

It’s:

👉 “What is the best way to do this — for now, and for the future?”

Because done properly:

• It secures a home
• Creates immediate equity
• And potentially benefits the next generation

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