Can I get a mortgage if I'm retired?

There are a number of ways to arrange a mortgage if you are retired. The mortgage you choose will depend on age at the start and end of the mortgage, the income available and any committed expenses, credit history and why the money is needed. We usually think of mortgages as being raised to buy the property they are secured against, but lenders are happy to advance a mortgage that can be used for a wide range of things.

Conventional mortgages have a fixed end date when the money needs to be repaid. They usually have to be settled before somebody reaches 85 but some niche lenders are more flexible. They depend on having enough income to pay for all of your normal expenses as well as enough money to pay the interest. They can be settled by paying off the capital borrowed during the term or with a lump sum at the end of the mortgage. This lump sum could come from selling up and downsizing, pension pots, inheritance or any reasonable source including another type of mortgage.

Mortgages designed specifically for retired people don’t have a fixed end date. They can be paid from a person’s estate on death or sometimes by regular payments. Retirement Interest Only (RIO) mortgages depend on you having enough income from pensions and investments to at least cover the monthly interest. Lifetime mortgages do not require somebody’s income to be assessed. They have options about whether the interest is paid or allowed to roll-up to be paid later on.