Mortgages in Retirement

The Mortgage Market Review

The Financial Conduct Authority (FCA) implemented the Mortgage Market Review (MMR) in April 2014. It placed a bigger emphasis on affordability, with lenders now taking a closer look at the income and outgoings of applicants.

As a result, many banks and building societies preferred not to lend to existing mortgage holders where the term would take them over the age of 65.

But this way of thinking is changing with an increasing number of banks and building societies becoming more flexible to these plans. This could, in fact, be a better option than traditional equity release and it’s something our advisers can discuss with you.

And if you’re over 50 and thinking about moving into a retirement home, we can talk through your options there, too.

Standard Mortgages

There are options for those in or approaching retirement who’ll need a mortgage in retirement. Bower can offer you access to standard mortgage products that are available to those from 50 up to 85 years old at the time of their mortgage term ending.

Remember that when addressing affordability, your pension can be taken into account, as can a proportion of other forms of income (such as investments).

Lifetime Mortgages

If you’re a homeowner aged 55 or over then you may be able to use your property wealth to clear your existing mortgage, and even release additional funds.

You could enjoy that holiday you’ve been promising yourself, get a new car or even top up your retirement income.

How do Lifetime Mortgages work?

With these mortgages you don’t have to make any monthly repayments at all. The loan plus interest is rolled-up together and only re-paid once the plan comes to an end – usually when you pass away or move into long-term care.

Some new lifetime mortgages are similar to conventional interest-only mortgages. So you can make fixed or voluntary repayments to reduce the amount of interest on the plan or the capital outstanding. Your Bower retirement equity release specialist can explain all this to you during your initial free home consultation.

Retirement Interest-Only Mortgages

A retirement interest-only mortgage (RIO) is for anyone over the age of 55.

You will only have to pay back the interest each month. The capital will not have to be paid back until you pass away or move into permanent care and you can generally borrow more with a RIO compared to a lifetime mortgage.

Find out more about RIO mortgages here, on our specialist retirement website


Need a mortgage plan where you can repay all or part of the loan after a few years? We might be able to help. Your independent Bower specialist will talk through all the options available before searching for the product that best meets your requirements.

Free, no-obligation initial consultation

Wherever you are in the UK, our specialists will be delighted to offer you a free, no-obligation initial consultation in the comfort of your own home to discuss your retirement lending needs (or over the phone if you prefer).

We’ll explain everything to you, including things like how a plan will reduce the value of your estate and the amount of inheritance you may be able to leave. We can also discuss all the different financial options available to you, tell you if you’re eligible for a plan and find out how much you could unlock from your home’s value.

Following your free consultation, your independent specialist can search the entire market to find the most competitive deal. Then, if you want to proceed, we can arrange everything for you as part of our bespoke, personalised service.

You can read more about Lifetime Mortgages and Home Reversion Plans on our specialist retirement lending website Bower Retirement.

Just get in touch with the mortgage experts at Bower to find out more and see how we can help get the right mortgage for you