Mortgages
Gary Goodwin
For generations, the conventional wisdom around mortgages was simple: pay off your home before you retire.
But that is changing.
More people are carrying mortgage debt into their 60s and beyond, while others are choosing to borrow against their property to help fund retirement, support family members, invest in property or meet significant one-off costs.
The latest figures from UK Finance underline how quickly the market is evolving.
There were 37,300 new loans advanced to borrowers aged 55 and over in the second quarter of 2026, an increase of 13.4% compared with the same quarter a year earlier. The total value of this lending reached £6.2 billion, up 20.5% year on year.
However, the figures need some context. UK Finance says the annual comparison has been inflated by unusually weak lending in Q2 2025, when activity was affected by the rush to complete transactions before the stamp duty changes introduced in April 2025.
Even so, the direction of travel is clear: later life borrowing is becoming an increasingly important part of the UK mortgage market.
And for someone aged 60 or over, taking out a mortgage is no longer necessarily an unusual or impractical proposition.
“Later life lending” is a broad term covering mortgages and other forms of borrowing available to older borrowers.
UK Finance defines its later life lending data as lending to borrowers aged 55 and over. It can include mainstream residential mortgages, buy-to-let mortgages, retirement interest-only (RIO) mortgages and lifetime mortgages.
A later life mortgage is not necessarily the same thing as equity release.
A person aged 60 might, for example, take out a conventional repayment mortgage with a term extending into their 70s.
Another borrower might choose a retirement interest-only mortgage, where they pay the interest but repay the capital when the property is sold, the borrower dies or another specified repayment event occurs.
A lifetime mortgage is different again. It is a form of equity release which allows homeowners, typically aged 55 or over, to access some of the value in their property without necessarily making monthly capital repayments.
The right solution depends on the borrower’s circumstances, objectives, income, health, family situation and wider financial plan.
Taking an equity release mortgage may also affect entitlement to means-tested benefits, which highlights the importance of taking financial advice if you are considering this step.
The growth is part of a much broader change in the mortgage market.
UK Finance says the number of mainstream mortgages extending beyond borrowers’ expected retirement age has almost tripled over the past decade, from just under 74,000 to more than 207,000.
And the Financial Conduct Authority (FCA) says almost 330,000 mortgages were advanced to borrowers aged over 55 in 2025.
Importantly, only 9% were lifetime mortgages or RIO products, meaning the vast majority were other forms of mortgage borrowing.
There are many reasons why more people are borrowing later in life.
People are living and working for longer, house prices have risen significantly over previous decades, and many borrowers are taking out mortgages later in life or choosing longer mortgage terms.
The FCA has highlighted the changing shape of the market, noting that many lenders now accept earned income up to age 75 when assessing affordability.
It also expects more mortgages to mature after borrowers reach State Pension age or have retired – see our article last month on the rise of marathon mortgages.
For some people, borrowing later in life may be a deliberate financial planning decision rather than a sign of financial difficulty.
Possible reasons include:
A homeowner may want to adapt or improve their property rather than move.
Some older homeowners use property wealth to help younger family members with deposits or other significant costs.
Later life lending can also be relevant to people purchasing a new home or investing in buy-to-let property.
A mortgage can sometimes be used as part of a wider strategy for managing cash flow between employment, pension income and other assets.
Some homeowners would rather remain in their existing home than move to a smaller property simply to eliminate their mortgage.
A borrower approaching retirement may need to refinance an existing mortgage rather than repay it from savings or sell their home.
A later life mortgage can be appropriate in some circumstances, particularly where the borrower has a reliable income, substantial housing wealth and a clear reason for borrowing.
Borrowing may allow someone to stay in a property that suits them rather than downsizing simply because their existing mortgage is coming to an end.
For homeowners with significant equity, borrowing can provide access to capital without selling the property.
There are increasingly different ways of borrowing in later life.
A conventional repayment mortgage, RIO mortgage and lifetime mortgage have very different characteristics, allowing advice to be tailored around the individual’s circumstances.
A longer mortgage term can reduce monthly payments, although this generally means paying interest for longer and potentially increasing the total amount repaid.
In some circumstances, borrowing against a property can form part of a broader retirement strategy.
However, this needs to be considered alongside pensions, investments, tax, inheritance and future spending needs.
Borrowing in later life also brings significant risks and potential costs.
Affordability can change significantly when someone retires. A mortgage that is comfortable while working may become much harder to maintain once employment income stops.
The FCA has specifically highlighted the potential difficulty of servicing mortgage debt after retirement, particularly where pension savings are insufficient or outstanding debt remains high.
Extending a mortgage term can reduce monthly payments but increase the total interest paid over the life of the mortgage.
As with any mortgage secured against a property, failure to maintain the required payments can ultimately put the home at risk.
Borrowing against a property can reduce the amount of equity ultimately available to beneficiaries.
This is particularly relevant when comparing conventional mortgages with lifetime mortgages, where interest can accumulate if it is not paid regularly.
Retirement, illness, the death of a partner, care costs or changes in household expenditure can all affect affordability.
If the mortgage is on a variable or future refinancing rate, changes in interest rates could increase the cost of borrowing.
This is why affordability needs to be assessed not simply on today’s income and interest rate, but against realistic future circumstances.
There is no ‘one size fits all’ answer to this question.
For one 60-year-old, taking out a mortgage could be entirely reasonable. For another, it could create an unnecessary financial burden.
The key question is not simply “Can I get a mortgage at 60?” but “Does borrowing make sense as part of my overall financial plan?”
That distinction is particularly important because mortgage affordability is only one part of the decision.
Someone might qualify for a mortgage but still decide that using pension savings, investments, downsizing or another source of capital would be more appropriate.
Equally, someone who could afford to repay their mortgage might decide that retaining investments and borrowing against a relatively low-cost property is preferable.
A specialist mortgage adviser can look at the practicalities of borrowing.
This can include:
This can be particularly valuable because lender criteria vary considerably.
The FCA’s position is that its rules do not prevent lending to older borrowers: affordability is the key consideration, whatever the borrower’s age.
A mortgage adviser can therefore help establish what is technically available. But that is only part of the decision.
The bigger question is often what the mortgage means for the rest of your financial life.
A financial adviser can help put the borrowing decision into the context of:
Fairstone offers expertise in both mortgage advice and financial planning.
If you’re considering whether a later life mortgage is right for you, we can help you assess the options and products available on the market as well as show you how a mortgage could affect your wider financial plan.
For more information, get in touch with us today.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED AGAINST IT.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. A recommendation will be made only following a full assessment of your personal circumstances. Always seek professional advice before making financial decisions.
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Yes. There is no general rule preventing someone aged 60 from getting a mortgage. Lenders will assess affordability, income, expenditure, the proposed term and their own lending criteria. Some lenders are prepared to lend well into borrowers’ 70s.
Yes, potentially. The key issue is usually whether the lender is satisfied that the mortgage remains affordable over its term, including after retirement if applicable. Pension income and other reliable sources of income can therefore be important.
Later life mortgage is a broad term covering mortgages available to older borrowers. It can include conventional repayment mortgages, interest-only mortgages, retirement interest-only mortgages and lifetime mortgages.
No. Equity release is one form of later life lending, but many older borrowers use conventional mortgages. A lifetime mortgage is an equity-release product, whereas a standard repayment mortgage requires the borrower to repay capital and interest according to the agreed schedule.
A retirement interest-only, or RIO, mortgage is a mortgage where the borrower pays the interest but does not normally repay the capital during the mortgage term. The capital is typically repaid when the property is sold, following the death of the borrower or another agreed repayment event.
Not necessarily. It depends on the individual’s income, expenditure, assets, pension arrangements, objectives and ability to maintain repayments. Professional advice can help determine whether borrowing is appropriate.
Depending on the circumstances, alternatives can include using savings or investments, downsizing, a lifetime mortgage, a retirement interest-only mortgage or delaying the borrowing.
Talking to a financial adviser can be valuable, particularly where the decision affects retirement income, investments, pensions, inheritance or future care planning. A mortgage adviser can assess mortgage options, while a financial adviser can consider the borrowing decision within the context of the individual’s wider financial plan.
Potentially. Lenders can consider pension income and other sources of retirement income when assessing affordability, although criteria vary between lenders.
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