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Given our longer lives and better health it is not unusual for people over 60 to still want to borrow for either lifestyle or investment purposes. With a standard loan being for 25 or 30 years lenders have certain legal obligations to consider before granting a loan under its standard terms and conditions. It is here that the knowledge and experience of a Creative Finance consultant can be of particular benefit.

From our experience people over 60 looking for a loan generally fall into 1 of the following 2 categories:

1. Asset rich but income poor
2. Strong passive income

Asset Rich & Income Poor

If you own your own home but need funds for essential repairs or to maintain your quality of life then we recommend you read our section on Reverse Mortgages. Reverse mortgages offer a way to access the equity in your home without repayments and without the risk of ever losing your home.

Strong Passive Income

If you have the benefit of a strong income source that is not reliant upon your working then you will generally be eligible for standard types of loans. Examples of this situation include:

• Good passive income based on investments, pensions, and annuities.
• You own your own business but it is not reliant upon yourself to operate and remain profitable on an ongoing basis.

Lenders will look at the risk to any of the income sources being relied upon. Also you will generally be uninsurable with Lenders Mortgage Insurances so the amount a lender will lend against any particular asset will be limited (generally 80% of the security value).