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How to get a mortgage when you’re retired

Your golden years should be a time to look forward to in life, but like any end goal, some careful planning and research are required beforehand

Whether you’re thinking about downsizing to a more suited home or finding your place in the sun in time for retirement, you may be wondering if you can get a mortgage. The good news is, with some careful planning you most certainly can. Here’s how:

Qualifying for a mortgage when you’re retired

When applying for a mortgage as a retiree, there are a few extra things to look out for.

Repayment period

Lenders will need to consider your age, as this will determine how much time you have to pay the mortgage back. This can make monthly repayments more costly, and some lenders will even set an age limit for new mortgage applications to avoid this.

Other banks will set age limits on when your mortgage must be paid off. For example, a residential mortgage must be paid off in full by the time the borrower is 80 years old.

It’s important to research lenders thoroughly and speak to a mortgage adviser, as they may be able to find the most suitable agreement for your personal circumstances.


If you will retire during your mortgage term or you have already retired, you will need to be able to prove that you can continue to make the monthly repayments.


Having an extra source of income such as an investment may increase your chances of being accepted for a mortgage.

For help with finding a mortgage post-retirement, we can help.

Retirement income and mortgages

Regardless of age, lenders need to know that their borrowers can repay the mortgage in full. However, some lenders will let you take out a mortgage that you will still be repaying after you have retired.

You may also be able to arrange a new mortgage, even after you have retired, but this will likely depend on your retirement income.

Retirement income refers to the sum of money you will have coming in after retirement.

To calculate your retirement income, work out your:

  • Expected income your pensions

  • Any weekly or monthly state pension payment

  • Any additional income from property or investments

When applying for a mortgage, make your lender aware of all of these types of income.

Proving your income

For workplace pensions, you can prove your income to your lender by providing a pension forecast or annuity statement, along with a statement for your State Pension.

If you are yet to retire, but you plan to in the near future, you will likely need to show evidence of both your current income and what you can expect to receive when you have retired.

Retirement-interest only (RIO) mortgages

A good option for retirees is an interest-only mortgage. These agreements allow you to only pay the monthly interest for a fixed period, without paying off the total amount owed.

Retirement-interest only mortgages (RIO) are exclusively designed for borrowers over the age of 55 and retirees, and these will also allow you to only pay the monthly interest.

To apply for an ROI, you will need to prove to the lender that you can afford to make the monthly interest payments and pass affordability tests.

How can I boost my chances of getting a mortgage after retirement?

The key to being accepted for a mortgage is to successfully prove that you have a stable and ongoing income.

Get your finances in order and show your potential lender that you have:

  • A secure pension to cover mortgage payments.

  • Evidence of any other sources of income after you have retired.

  • Details that can prove your mortgage will remain affordable such as your expenditure, your pension and savings - and how long they will need to last.

While mortgage lenders are more strict with the products that they offer to retirees, it is entirely possible to secure the right mortgage for your situation, so you can find the home you’ve been dreaming of retiring in.

Need more advice for your next move? Contact us today

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