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Can you get a mortgage in retirement?

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Moving house or re-mortgaging after retirement can be difficult for homeowners over 55, as they may not be eligible for a traditional mortgage. If you already own a property and are looking to buy another, equity release may be able to help.

Unless you have the capital to buy a property outright, it’s very likely that you’ll have to rely upon a lender to help you move home. Buying a house is often thought of as something you might do earlier in life, however, there are many reasons why people over 55 might look to move house as well.

This includes:

  • Moving to a bigger property to host family gatherings and new grandchildren
  • Moving to a different location to be closer to family and friends, local amenities or a dream retirement area
  • Buying a second property as a holiday home or weekend getaway
  • Moving to a house more suitable for your later life needs


Whatever your reasons, it ultimately comes down to affordability. Luckily, there are several options available that can be used to support you financially.

Can you get a traditional mortgage?

If you bought your first home, it is likely that you relied on a traditional mortgage with a bank to do so. With a traditional mortgage, the bank lends a certain amount of money, which you then make monthly repayments against, plus an agreed interest.

Whilst the bank may be willing to lend in certain situations to people over 55, many will find that they may be excluded from acquiring a traditional mortgage, as some lenders may have stricter criteria meaning that that the mortgage cannot go beyond this point. Moreover, even if the bank is willing to lend the finance needed, you may be reluctant to take up a mortgage that will require repayments in retirement, as it can put additional pressure in the case of reduced or lost income and may not suit a change in circumstances in the later years.

We will of course explore this option with you.

How equity release could be a solution

If you don’t qualify for a traditional mortgage, or you’re worried about keeping up with monthly repayments, then equity release may be an ideal option for you.

Our team of expert later life lending specialists have helped many clients over 55 access Lifetime Mortgages. This enables them to release the desired amount of equity from a current property, to fund the purchase of their new home.

A Lifetime Mortgage is a loan against the value of your house and can be taken as either a lump sum, a monthly income or both. No capital and interest repayments are made until the property is sold. Instead, the interest can be rolled up and added to the total amount of the loan (but interest payments can still be made if desired). If we don’t think equity release is suitable, we’ll say so.

Re-mortgaging with equity release

A lifetime mortgage might be a good idea for you even if you’re not looking to move out of your existing property.

Re-mortgaging with a Lifetime Mortgage scheme may give you the benefit of being able to pay off your existing mortgage, removing the burden of monthly payments. Instead, any remaining money owed to your Lifetime Mortgage lender will be collected when the house is eventually sold, or you pass away.

If you want to learn more about whether you qualify for a Lifetime Mortgage, either to move home or to re-mortgage, then please get in touch.