There is still a widespread assumption that once you reach your late 50s or 60s, getting a mortgage suddenly becomes more difficult, or that your only option is some form of equity release.
In fact, the mortgage market for older borrowers is much broader than many people imagine.
Latest numbers from UK Finance It shows that 37,300 new loans were made to borrowers aged 55 and over during the second quarter of 2026, worth £6.2 billion.
Later residential loans represented 7.8% of total residential loans during the quarter, while borrowers aged 55 or over accounted for a whopping 20.6% of all buy-to-let loans.
Perhaps the most telling thing is that Financial Conduct Authority It says nearly 330,000 mortgages were made to over-55s during 2025, however, only 9% of these were lifetime or retirement interest-only mortgages.
In other words, most mortgage borrowing among older clients occurs outside of these two product areas.
Buy-to-let (BTL) numbers are arguably stronger, according to UK FinanceAccording to Q2 2026 data, there were 11,950 new BTL mortgages where the main borrower was over 55, worth £2.17 billion. The number of these loans increased by 9.73% compared to the previous year, while their total value increased by 15.43%.
In fact, 20.59% of all BTL loans made during the second quarter of 2026 went to borrowers over the age of 55, so more than one in five new BTL mortgages were actually taken by a borrower over the age of 55.
However, being close to retirement does not automatically prevent you from taking out a mortgage.
How do lenders evaluate income?
As with any mortgage application, one of the main questions your lender will ask is whether you can afford the repayments.
Where things are different for someone approaching retirement is that lenders may have to consider two different financial situations, what the borrower earns today and what their income is likely to look like once they stop working or reduce their hours.
The Financial Conduct Act (FCA) requires lenders to consider income over the life of a mortgage, including income in retirement. He also points out that many lenders will now accept income earned up to age 75 when making an affordability assessment.
This means that a 60-year-old should not assume that he or she cannot get a mortgage over a longer term simply because the term takes him beyond his planned retirement date.
Instead, they may need to provide proof of retirement income, investments, savings or other sources of income that can support the mortgage once their salaries decline or stop. For landlords, the situation could be different again.
Rental income and property investment strength may form a key part of a lender’s assessment, while pension income and other investments can also be relevant depending on the lender and product.
This is especially important because ownership already plays a major role in the retirement plans of many owners.
the English Government Survey of Private Owners 2024 It found that 56% of landlords view their role as a landlord as a long-term investment that will contribute to their pension.
What happens to my mortgage after retirement?
The important point here is that lenders need to understand not only how the mortgage will be paid today, but how it will continue to be paid for several years afterward.
Let’s take, for example, someone who borrows £300,000 on an interest-only mortgage at 5%. The monthly interest payment will be £1,250. If they are still working and earning a solid salary, this figure may be affordable today, but if they are planning to retire in five years, the lender will also want to know whether £1,250 a month will still be affordable once their employment income stops.
They will also need a reliable plan to repay the principal amount of £300,000 at the end of the mortgage term. This may include the sale of another property, investments, pension assets where appropriate, or the eventual sale of the mortgaged property itself, depending on the mortgage and lender’s rules.
So the issue is not just about age, but whether the numbers will continue to work.
Mainstream mortgages may still be an option
This is why it is dangerous to assume that someone approaching retirement will automatically need a specialist mortgage later in life.
For some borrowers, a standard repayment or interest-only residential mortgage may be appropriate. For others, it may be worth considering an interest-only retirement mortgage.
With a RIO mortgage, the borrower typically continues to pay the interest each month, with the principal generally repaid when the property is sold following a move into long-term care or death.
The correct answer depends largely on the applicant’s age, income, assets, future plans and purpose of borrowing, which is why advice can be so important.
One lender may have a maximum age at the end of a mortgage term that excludes a borrower, while another may be comfortable lending for a much longer period. Some will take a broader view of pension income and investing than others.
For landlords, criteria can vary further depending on rental income, portfolio size, property type and whether borrowing is personal or through a limited company.
The key is to start looking at these issues early as retirement is a big change in anyone’s financial situation, but it does not necessarily mean the end of their mortgage options. For many borrowers, there may be much more options available than they initially thought.
Hiten Ganatra is the Managing Director of the company Finance insight
