If you’re approaching retirement or already there and wondering whether you can still get a mortgage, the short answer is yes. But the rules change. Lenders look at income differently, they cap terms earlier, and the paperwork can take people by surprise.
Here’s a clear guide to how mortgages work in retirement, what lenders check, and the options that actually exist.
What Counts as “Retirement” to a Lender?
Lenders don’t just look at your age. They look at your income after you stop working.
Most will ask:
- When do you plan to retire?
- What will your income be after that point?
- Do your pensions actually cover the payments?
Your mortgage must still be affordable after retirement not just today.
Why it matters:
A mortgage that looks affordable at 63 with a salary may not look affordable at 68 on a pension. Lenders model for that.
The Main Mortgage Options for Retirees
1. Standard Residential Mortgage (Yes, even after 60 or 70)
Many people assume they’re “too old” for a mortgage. That’s not true.
What matters is:
- Your income in retirement (private pensions, state pension, rental income, investments)
- The lender’s maximum age at the end of the term (often 70–85)
- Whether the repayments stay affordable once you retire
Typical use cases:
- Buying a new home after downsizing
- Helping family move (e.g., buying with adult children)
- Remortgaging to get a better rate
2. Retirement Interest-Only (RIO) Mortgage
A RIO mortgage lets you pay interest only, with the capital repaid when you sell the home, move into care, or pass away.
Key points:
- You must prove you can afford the monthly interest for life.
- No fixed end date — that’s the main appeal.
- Lower monthly payments because you’re not repaying the loan itself.
Why people choose this:
It gives stability on monthly costs without forcing a sale before you’re ready.
3. Lifetime Mortgage (Equity Release)
A lifetime mortgage lets you borrow against your home without making monthly repayments. The loan plus interest is repaid later, typically from the sale of the home.
You can:
- Take a lump sum
- Draw down smaller amounts over time
- Make voluntary repayments if you want to control interest
Why it suits some:
It’s flexible, regulated, and can boost retirement income without monthly commitments.
Why it doesn’t suit everyone:
Interest compounds. Your estate gets less later. It’s a long-term decision.
What Lenders Check (and Why It Feels Different After 55)
1. Pension Income
Lenders want to see:
- State pension forecasts
- Private pension statements
- Annuity income
- Drawdown income
- Investment income where stable
Why:
They want proof of sustainable, not speculative, income.
2. Term Length and Age Limits
Every lender has its own rules. Some will go to age 70, some 80, some 85.
Why:
They’re modelling longevity, income stability, and affordability at later ages.
3. Property Type
Older borrowers sometimes come up against criteria issues:
- Flats above commercial units
- High-rise blocks
- Non-standard construction
- Retirement complexes with age restrictions
Why:
Harder-to-sell homes present more risk for lenders.
When It Works Smoothly (and When It Doesn’t)
It works smoothly when:
- Your pension income is fully documented
- You have low existing debts
- You want a shorter term
- The property is standard construction
It gets tricky when:
- Your pension is drawdown only with no clear sustainability
- Your income includes irregular investments
- You want a 20-year mortgage at age 65
- The property is leasehold with high service charges
None of this is a deal-breaker, but it shapes which lender fits you.
Why People Seek Mortgages in Retirement
You’re not alone. The most common reasons are:
- Downsizing but needing a small top-up mortgage
- Helping family with deposits (“Bank of Mum & Dad”)
- Remortgaging off an interest-only mortgage that’s ending
- Releasing cash without selling the home
- Buying a more suitable home for later life
Retirement finances are often more flexible than people realise — but also more carefully assessed.
Practical Steps to Take
1. Gather Income Evidence Early
Pension statements often take weeks to arrive.
Get together:
- State pension forecast
- Private pension statements
- Annuity documents
- Investment summaries
2. Understand Your Budget
Lenders will include:
- Council tax
- Buildings insurance
- Utilities
- Ground rent/service charges (if leasehold)
Why:
These costs hit retired income harder because income is fixed.
3. Decide How You Want to Repay
- Monthly repayments?
- Interest only?
- No repayments now (lifetime mortgage)?
The product you choose shifts everything else.
4. Speak to a Mortgage Adviser Early
Lenders vary hugely. Some are friendly to older borrowers. Some aren’t.
A mortgage adviser can steer you to the right lender, criteria, and product.
Final Thoughts
Getting a mortgage in retirement is absolutely possible, you just need the right product, the right income evidence, and a lender whose policies match your situation.Don’t be discouraged if the first lender says no; criteria vary more than most people realise.
If you’re unsure what you can borrow or which route suits your retirement plans, a mortgage adviser can help you map it out calmly.
There are several mortgage advisers who specialise in later-life and retirement mortgages on UK Property Looker. Tell our AI agent what you’re trying to do, and it will guide you toward an adviser who fits your situation.