Getting property finance becomes more challenging as you get older.
Lenders set age caps on mortgages, which can limit your options when you need to buy a property or release equity. If you’re over 65, you might have already encountered closed doors at high street banks, despite having substantial assets or a solid income.
But here’s some good news: bridging loans work differently when it comes to age restrictions. While standard mortgages might cut off at 70 or 75, many bridging lenders will consider applications from borrowers well into their 70s and 80s.
Let’s look at what’s really possible with bridging finance at different ages, and how these loans might offer a solution when traditional lending falls short.
Age Requirements for UK Bridging Loans
You’ll find bridging loans much more flexible when it comes to age limits compared to standard mortgages.
The minimum age for a bridging loan is 18 – the same as any UK loan. But what really sets these loans apart is their approach to maximum age limits.
Many bridging lenders don’t set a fixed upper age limit at all.
Instead, they look at each application based on its merits. For example, if you’re 75 and want to buy a £500,000 property while waiting for your current home to sell, most bridging lenders will focus on the properties involved rather than being put off by your age.
Let’s clear up some common misunderstandings about age and bridging loans:
First, you don’t need to be working to get a bridging loan. Unlike mortgages, which need proof of regular income and affordability, bridging lenders care more about how you’ll repay the loan – usually through selling a property or refinancing.
Second, being retired doesn’t mean higher interest rates. Your rate depends on factors like the loan amount, property value, and exit strategy rather than your age.
What do lenders actually look at? They’ll want to see:
- The value of the property you’re using as security
- Your clear plan for repaying the loan
- The amount of equity you have in any properties
- Your experience with property (if you’re an investor)
Take Mrs Thompson, aged 78, who used a bridging loan to buy her perfect bungalow before her four-bedroom house sold. The lender approved her application within two weeks because she had substantial equity and a clear exit strategy – the sale of her existing home.
How Age Affects Bridging Loan Applications
Your age won’t make or break your bridging loan application.
With a mortgage, being older can limit your options but bridging lenders take a more practical view of age and how it relates to your application.
What matters more is the strength of your exit strategy – that’s your plan for paying back the loan. Bridging loans are always short-term. The maximum lenders will offer is 24-36 months, but the average bridge loan lasts round 12 months.
If you’re retired, you won’t need to show a regular salary like you would with a mortgage. Instead, the lender will look at how you plan to repay. This could be through selling another property, using an inheritance, or refinancing to a different type of loan.
Property assets, equity and loan to value are key. Let’s say you own a £600,000 house outright and want to buy a new £450,000 property before selling your current one. Most lenders will be happy to help, regardless of whether you’re 45 or 75, because the loan is secured against solid property value.
Remember that each lender has their own way of assessing applications. Some might want to see proof of your assets or savings, while others focus mainly on the property’s value. That’s why working with someone who knows different lenders’ requirements can save you time and improve your chances of approval.
Let’s talk bridging loans!
Comparing Age Limits: Bridging Loans vs Mortgages
Getting a mortgage becomes harder as you get older, especially beyond age 65.
Most high street lenders cap their mortgages at age 65-70 for new applications, or they’ll insist the loan must end by age 75. This leaves many older borrowers stuck, even when they have good income and plenty of assets.
Bridging loans work differently, mainly because they only last a year or two.
Most bridging lenders don’t set fixed age caps because they’re more interested in your property’s value and your repayment plan. When you apply for a £500,000 bridging loan at age 72, the lender looks at what you own and how you’ll pay back the loan, rather than being worried about your age.
Why such different approaches?
It comes down to time frames. Mortgages run for many years – often 25 or more. Lenders worry about your ability to keep up payments over such a long period, especially after retirement.
Bridging loans last just a few months to a couple of years, so affordability doesn’t matter so much, and many loans don’t require monthly repayments anyway.
A bridge loan could let you:
- Buy your next home before selling your current one
- Purchase a property quickly at auction
- Fund home improvements before selling
- Release equity for business purposes
Take Mr Roberts, aged 69, who found his perfect retirement bungalow but couldn’t get a mortgage. He used a bridging loan to buy the new property while selling his family home. The bridge gave him time to sell at the right price, without losing his dream home to another buyer or getting involved in a property chain.
But remember – bridging loans aren’t always the answer.
If you need long-term property finance and have a steady retirement income, options like retirement interest-only mortgages might work better, with lower costs. The key is matching the finance to your specific needs and situation.
These flexible age requirements make bridging loans a practical choice for many people. Let’s look at how different groups use these loans to achieve their property goals, regardless of their age.
Who Can Use Bridging Loans?
Getting older doesn’t mean your property plans need to slow down. Bridging loans work for all sorts of people at different life stages, as long as you have property assets and a solid plan for repayment.
Let’s look at how different groups use these loans to achieve their goals.
Property Investors
Age shouldn’t stop you from growing your property portfolio.
Whether you’re 35 or 75, bridging loans can help you move quickly on investment opportunities. You might spot a below-market-value property for £450,000 that needs quick completion. With a bridging loan, you can secure the deal while arranging longer-term finance or preparing to sell another property.
Retirees
Your retirement years can be perfect for making property moves that suit your lifestyle.
Perhaps you’ve found an ideal £600,000 bungalow but haven’t sold your current home. A bridging loan lets you secure your new home without rushing to sell your existing property at a discount. Your age won’t be a barrier – lenders focus on your property equity rather than your pension income.
Business Owners
Running a business at any age comes with opportunities and challenges.
You might need quick access to funds for your company premises or want to expand into new locations. A business owner in their 60s can use a bridging loan to buy a £500,000 commercial property, using their existing business premises as security while arranging a commercial mortgage.
Property Developers
Property development isn’t limited by age – experience often matters more.
Whether you’re a younger developer starting out or an experienced developer in your 70s, bridging loans can fund your projects. Many lenders value your track record and project viability over your age. For example, a 68-year-old developer might use a bridge to buy and renovate a £400,000 property, with the completed project as the exit strategy.
How to Apply for a Bridging Loan
Getting a bridging loan can be quicker than you might expect, whether you’re 35 or 75. The process starts with a simple chat about your plans and the property you want to buy or use as security.
For older borrowers, the paperwork requirements are refreshingly straightforward.
You won’t face the same pension or income scrutiny that comes with a mortgage. Instead, most lenders will ask for proof of ID, evidence of your exit strategy, and details about the property.
If you’re retired and selling another property to repay the loan, you’ll need to show it’s being marketed.
The property valuation comes next. A surveyor will assess the property’s current value and, if you’re planning renovations, its potential future value. This usually takes just a few days to arrange and complete.
Most bridging loans complete within 1-3 weeks, making them particularly useful for buyers who might have found their perfect property but need to move quickly. Having your solicitor lined up early can speed things along.
Remember that every application is unique.
A straightforward house purchase will progress more quickly than a complex development project. Being clear about your plans and having your documents organised makes everything smoother.
Working with a Broker
Finding the right bridging loan becomes easier with expert help, especially when age might limit your other borrowing options.
A broker who specialises in short-term property finance knows which lenders will consider your application at any age.
You’ll save valuable time by avoiding lenders whose age limits might restrict your application. While one lender might turn down applicants over 75, another could be happy to lend well into your 80s. Brokers know these differences and can match you with suitable options straight away.
They’ll also help present your application in the best light. For example, if you’re a retired buyer purchasing a new £600,000 home before selling your current one, they’ll know which lenders offer the best terms for this scenario. They can explain exactly what evidence you’ll need to support your exit strategy.
Many bridging lenders only work through brokers, so you’ll get access to deals you couldn’t find on your own. Your broker will compare different options and explain the costs clearly, helping you understand exactly what you’re signing up for.
Most importantly, they’ll look at your whole situation – not just your age. If a bridging loan isn’t your best option, they’ll tell you and might suggest alternatives that better suit your needs.
Alternative Options for Older Borrowers
While bridging loans work well for many older borrowers, you’ve got other options too.
Retirement interest-only mortgages offer a longer-term solution if you have a steady pension income. You’ll only pay the interest each month, making them more affordable than standard repayment mortgages.
Equity release plans are designed for home owners age 55 and over. They offer a way to tap into your equity, without the need for repayments.
Some specialist lenders offer hybrid products that combine features of different loans. You might start with a bridging loan to buy a property quickly, with an agreement to switch to a long-term mortgage once you meet certain conditions.
Private banks can create bespoke lending packages for borrowers with substantial assets. They might consider your investment portfolio, business interests, or other assets alongside the property value.
Related: Can you take a loan out against your stock portfolio?
Conclusion
Age needn’t be a barrier to property finance – bridging loans focus on your assets and exit strategy rather than your age. While mortgages might become harder to get as you get older, bridging finance stays accessible well into your later years.
Your success in getting a bridging loan depends more on having a solid plan for repayment and suitable property security. Whether you’re downsizing in retirement, investing in property at 70, or developing property in your later years, these loans can help you achieve your goals.
If you’re over 65 and considering a bridging loan, start by getting expert advice.
A specialist broker can assess your situation, explain your options, and help you find the right solution – whether that’s a bridging loan or another type of property finance. They’ll guide you through the whole process, ensuring you understand everything before making any decisions.
FAQ
Many bridging lenders don’t set a maximum age limit. Instead, they focus on your property’s value and exit strategy. Some lenders will consider applicants well into their 80s.
No, regular income isn’t usually required. Bridging lenders focus on your exit strategy and the property’s value rather than your income.
Yes, you can get a bridging loan at 75. Most lenders will consider your application based on the property’s value and your exit strategy rather than your age.
The minimum age is 18, the same as other types of UK loans and mortgages.
Bridging loans are much more flexible. While mortgages often have maximum age limits of 70-75, many bridging lenders have no upper age restriction.
Yes, bridging loans often approve older borrowers who’ve been refused mortgages, as long as you have a clear exit strategy and only need to borrow for 1-2 years.
Approval times are the same regardless of age, typically 1-2 weeks depending on circumstances.
Read more: How Quickly Can You Get a Bridging Loan?
Options include retirement interest-only mortgages, equity release, and specialist later-life lending products.
Brokers know which lenders accept older borrowers and can match you with those offering the best terms for your situation.
