Can a pensioner get a mortgage?

Can a pensioner get a mortgage?

It’s a common belief that once you retire, the door to getting a mortgage is firmly closed. In reality, that isn’t true. Pensioners can still get mortgages, although the choice of lenders and products is more limited, and the checks tend to be stricter.

In the UK, there is no legal maximum age for applying for a mortgage. Lenders are not allowed to reject you simply because of your age. What they can do is focus on two key questions:

• Is the mortgage affordable?
• Can you show that it will be repaid?

If you can answer both of those, being retired does not automatically rule you out.

Why do pensioners apply for mortgages?

Later life can bring big changes, and borrowing sometimes helps manage them. There are plenty of sensible reasons why someone might want a mortgage in retirement, including:

• Making adaptations to an existing home so it’s safer or easier to live in.
• Moving to a more suitable property, perhaps by downsizing or relocating closer to family.
• Clearing the balance on an interest-only mortgage when the term comes to an end.
• Helping children or grandchildren with a house deposit.
• Raising extra income by releasing equity from a property.

For many people, retirement is about reshaping life rather than slowing it down, and a mortgage can sometimes support that.

Is there an age limit for mortgages?

While there’s no legal age limit, most lenders set their own upper age boundaries.

• Some high-street lenders stop lending to borrowers over 55 or 65.
• Others allow mortgages to run until 75, 80, or even 85.
• A small number have no upper age limit, provided affordability can be demonstrated.

Smaller or specialist lenders are often more flexible than the big banks, although this can mean higher interest rates or lower borrowing limits.

Because the rules vary so much from one lender to another, many older borrowers turn to a mortgage broker who specialises in later-life lending.

Is it hard for a pensioner to get a mortgage?

In most cases, yes — it’s more difficult, but certainly not impossible.

Lenders want reassurance that your income is secure and likely to continue. Their main concern is whether you’ll still be able to afford the repayments years down the line.

Depending on your situation, you may be asked for:

• Proof of your state pension.
• Statements showing the value of any private or workplace pensions.
• Annuity statements, if you have one.
• Recent bank statements.
• Payslips, if you’re still working part-time or full-time.

You’ll also need:

• A good credit history.
• A sensible mortgage term (often shorter for older borrowers).
• Evidence that repayments would remain affordable even if costs rise.

Shorter mortgage terms usually mean higher monthly payments, which is why affordability checks for pensioners tend to be particularly thorough.

Types of mortgages available to older people

There are several mortgage options designed specifically with older borrowers in mind.

Lifetime mortgages (equity release)

A lifetime mortgage lets you release equity from your home while continuing to live there. Instead of making monthly repayments, interest is usually added to the loan. The mortgage is repaid when the property is sold, typically after death or a move into long-term care.

These products are regulated and should always be taken out with specialist advice.

Retirement Interest-Only (RIO) mortgages

RIO mortgages work much like traditional interest-only mortgages, but without a fixed end date. You pay the interest each month, and the loan itself is repaid when the property is sold, you move into care, or you pass away.

Older People’s Shared Ownership (OPSO)

OPSO is a government-backed scheme for people aged 55 and over. You buy a share of a property (usually between 10% and 75%) and pay rent on the rest. While it isn’t a traditional mortgage, it can make later-life home ownership more achievable.

Home Ownership for People with Long-Term Disabilities (HOLD)

HOLD is another shared ownership scheme, aimed at people with long-term disabilities. It allows applicants to buy homes that meet specific accessibility needs when suitable properties aren’t available through OPSO.

See also: Types of mortgages explained

Should pensioners get professional advice?

In short, yes — absolutely.

Borrowing later in life can be complicated, and the wrong decision can affect not just you, but your family as well. Getting independent advice is essential.

Organisations such as Age UK offer clear, impartial guidance on housing and finance options for older people. A regulated financial adviser or specialist mortgage broker can also help you understand what’s realistic, suitable, and safe for your circumstances.

Frequently asked questions