Pensioner Bridging Loans

A bridging loan is a loan borrowed against a property to solve short-term financial requirements. This type of loan can be beneficial to a retired person, pensioner, or senior citizen who has a lot of equity in their property but little cash in hand. A bridging loan may commonly be used to aid in downsizing, or to repay an interest only mortgage which was taken out years previously

When would you need a bridging loan?

• When you are looking to purchase another property but have your cash tied up in the current property,
• Chain break in property sales
• Temporarily to pay care home fees or any other fees.
• Quick cash release for various reasons until the property sells

You don’t want to lose the property you have found. You get a short-term bridging loan, which can be secured against your current property or both the current and the new property, depending on the level of equity available. The loan can also be secured against any other residential properties you may own.

The funds are given to you for up to 12 months, and usually there are no tie-in periods or exit penalties. However, some lenders may charge an exit fee, which would be disclosed to you prior to agreeing.

When the property sells, you will repay the loan in full without incurring any penalties.

Can pensioners get bridging loans?

Pensioners can potentially access bridging loans, but eligibility often depends on various factors such as their income, assets, credit history, the exit strategy and the policies of individual lenders. Bridging loans are typically short-term financing options designed to cover temporary financial gaps, such as when waiting for a pension payout or the sale of a property. Some lenders may require additional collateral or proof of repayment capacity. It’s essential for pensioners to carefully assess their financial situation and explore options with different lenders to determine eligibility and suitability for a bridging loan.

Is there an age limit for getting a bridging loan?

Age limits for obtaining a bridging loan can vary among lenders and jurisdictions, but generally, most lenders do have age restrictions in place. While some may set a minimum age requirement, such as 18 or 21 years old, others may have maximum age limits, often ranging from 65 to 85 years old. However, some lenders may be willing to consider applications from older individuals on a case-by-case basis, taking factors such as income, assets, and repayment capacity into account. It’s crucial for potential borrowers to inquire with lenders directly to understand their specific eligibility criteria regarding age limits for bridging loans.

Can a 70 or 85 year old get a bridging loan?

Yes, it is possible for a 70 or even 85-year-old to obtain a bridging loan, but eligibility largely depends on individual circumstances and the lender’s policies. Bridging loans are typically short-term financing options used to bridge the gap between the purchase of a new property and the sale of an existing one. While age might be a factor considered by lenders due to the repayment period and associated risks, some lenders may still offer bridging loans to older individuals based on their financial stability, assets, and repayment plan. It’s advisable for individuals in this age bracket to consult with financial advisors or mortgage brokers who can provide guidance on available options and help navigate the application process.

Can I remortgage my house at 60?

Yes, it’s possible to remortgage your house at 60, but eligibility will depend on various factors, including your financial situation, credit history, income stability, and the lender’s policies. Many lenders offer remortgage options to individuals in their 60s, as long as they can demonstrate affordability and meet the lender’s criteria. However, it’s essential to consider the potential impact on retirement plans and ensure that the new mortgage terms align with your long-term financial goals. Consulting with a financial advisor or mortgage broker can provide personalised guidance on whether remortgaging at 60 is a suitable option for your circumstances. 

Key features of our bridging loans

• It can be on a 1st charge or 2nd charge basis. A second charge is a charge on the property in favour of a lender. In the event of the property being sold, the first charge lender will get their share first, and the remaining balance will go to the second charge lender, and so on.
• You can borrow from £50,000 upwards.
• We have lenders on our panel who have no upper age limit.
• There are no tie-in periods or exit fees.
• There are no monthly payments as interest is compounded or rolled over.

Please look at our bridging loan calculator to see what the rates are and how much it would cost you. Alternatively, please call one of our bridging loan specialists on 0116 464 5544, who will take your details and provide you with a non-obligatory quote.

As everyone’s individual circumstances vary, it is very important that the decision to borrow any money be made after careful consideration. Please note that your property can be at risk of being repossessed if the loan is not repaid within the agreed-upon time frame.

Types of bridging loans