I'm 55 Years or Older
Age opens up routes that aren't available to younger buyers.
Can you get a mortgage over 55? Yes, and age opens up routes that are not available to younger buyers. Older Persons Shared Ownership (OPSO), Retirement Interest-Only (RIO) mortgages and equity release on a downsized home are the 3 routes to know.
Written by Patricia Ogunfeibo, solicitor (non-practising) and Chartered Tax Adviser with over 40 years in property.
Prefer to listen? Open any guide and use the audio player at the top to hear it read aloud.
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What usually gets in the way
The obstacles that come up most often for this group, and what actually moves each one.
Maximum age at the end of the term shortens the mortgage
Most lenders set a maximum age for the end of the term, so a shorter term is often unavoidable. A shorter term means a higher monthly payment for the same loan, which is why affordability rather than the loan size is usually the binding constraint for older buyers.
Pension and mixed income needs evidencing carefully
State pension, workplace pension, drawdown, annuity income and continuing employment are all assessed differently. Where you are still working but approaching retirement, lenders will want to see what your income will be after you stop, not just what it is now.
Fewer lenders, and criteria vary sharply between them
The number of lenders willing to lend into later life is smaller, and their rules on age, income type and property type differ more than they do in the mainstream market. This is a market where a broker who specialises in later life lending changes the outcome.
Leasehold, service charges and age restricted developments
Retirement developments often carry significant service charges, ground rent and sometimes event fees payable on sale or transfer. They can also be harder to resell. Read the lease and ask directly about event fees before you commit.
Equity release reduces what is left for your estate
Releasing equity can solve a cash flow problem and it reduces the value passing to your family, with interest usually compounding over time if it is not serviced. It is a regulated product with its own advice requirements, and family conversations are easier had early.
Downsizing costs more than people expect
Estate agent fees, legal fees on both the sale and the purchase, stamp duty where it applies, removals and the cost of furnishing a different space all come off the equity you release. Model the net figure before you count on it.
Routes worth checking
Eligibility rules differ by nation and sometimes by local authority. Always check the current rules for where you plan to buy.
Older Persons Shared Ownership, OPSO
A shared ownership route for buyers aged 55 and over, typically allowing purchase of up to a set maximum share, with no rent payable on the remainder once that maximum is reached. Availability depends on the provider and the area.
Retirement Interest-Only mortgages
You pay the interest each month and the capital is repaid when the home is sold, you move into long term care, or on death. Lower monthly payments than a repayment mortgage, and the capital is not reduced, so the loan remains against the property.
Standard mortgages with later life criteria
Some lenders, particularly building societies, lend well into later life on ordinary repayment terms where income supports it. Do not assume a specialist product is your only option before a broker has checked.
Equity release, lifetime mortgages and home reversion
Regulated products that release cash from a property you own, typically without monthly payments, with interest compounding on a lifetime mortgage. Advice is required, and the effect on benefits and inheritance should be understood in full first.
Downsizing to buy outright or with a small loan
Often the simplest route where you already own. Selling and buying a smaller or cheaper home can remove the mortgage entirely, at the cost of the transaction fees and the move itself.
How the term length changes the monthly payment
An illustration on a £120,000 loan, using made up figures to show the mechanism. Not a quotation, a prediction or advice.
- Loan required
- £120,000
- Repayment over 25 years
- Lowest monthly payment of the three
- Repayment over 12 years
- Noticeably higher monthly payment
- Interest only in retirement
- Lowest monthly outlay, capital unchanged
- Capital owed at the end
- Nil on repayment, £120,000 on interest only
The choice is between paying more each month and leaving the capital outstanding against the home. Which is right depends on your income and your plans for the property, and both are worth discussing with a broker and, where inheritance matters, with your family. Illustration only, not financial or mortgage advice.
Common questions
Straight answers to what people in this situation ask most. General information, not financial, mortgage, tax or legal advice.
Can I get a mortgage over 55?
Yes. Most lenders set a maximum age for the end of the term, so a shorter term is often unavoidable, but some lenders, particularly building societies, lend well into later life on ordinary repayment terms where income supports it. The number of willing lenders is smaller and their rules differ more than in the mainstream market, so a broker who specialises in later life lending changes the outcome.
What is a retirement interest-only mortgage?
You pay the interest each month and the capital is repaid when the home is sold, you move into long term care, or on death. Monthly payments are lower than a repayment mortgage, and the capital is not reduced, so the loan remains against the property. It suits buyers whose income covers the interest comfortably but who do not want a shrinking term forcing a high payment.
What is Older Persons Shared Ownership?
A shared ownership route for buyers aged 55 and over, typically allowing purchase of up to a set maximum share, with no rent payable on the remainder once that maximum is reached. Availability depends on the provider and the area, so check with the shared ownership provider for the region you want to live in.
How is pension income assessed for a mortgage?
State pension, workplace pension, drawdown, annuity income and continuing employment are all assessed differently. Where you are still working but approaching retirement, lenders will want to see what your income will be after you stop, not just what it is now. Having pension statements and evidence of continuing income ready speeds the case up.
Should I downsize or release equity instead?
Downsizing can remove the mortgage entirely, at the cost of agent fees, legal fees on both transactions, stamp duty where it applies and removals, so model the net figure before you count on it. Equity release releases cash without monthly payments but reduces what passes to your family, with interest usually compounding. Equity release is a regulated product with its own advice requirement, and family conversations are easier had early.
Your next steps
- See what lenders count as affordable
- Read the deposit alternatives guide in full
- Read the overview of every government scheme first
- Read the full step-by-step guide to buying a house in the UK
- Score how mortgage ready you are with the free Readiness Check
- Test a monthly payment your pension income could sustain in the Monthly Budget Builder
- Add up legal fees, survey and stamp duty with the Total Cost to Complete calculator
- Check the stamp duty due in England and Northern Ireland with the Stamp Duty calculator
- Compare renting against buying with the Rent vs Buy calculator
Other pathways
Does another situation fit you better? Jump straight to it.
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