If you’ve retired or are heading that way, you might be wondering how much you could borrow on a mortgage in retirement.

Whether you’re planning a move, looking to release funds, or just want a clearer picture of your financial options, the good news is that age alone doesn’t stop you from getting a mortgage.

How Do Lenders Work Out What You Can Afford?

Lenders use affordability checks, just as they would for a younger borrower. The key difference is that they’ll base your application on retirement income rather than salary.

That means they’ll assess your pensions, whether that’s a state pension, workplace pension, or private pension, as well as any other income like investments, rental earnings, or savings.

If you’ve already retired, the figures are straightforward. If you’re applying before retirement, they’ll want to see what your projected income looks like once you stop working.

What Are the Mortgage Options for Retired Borrowers?

There’s more than one route you can take. Some people go for a traditional repayment mortgage with a shorter term, as long as they can show enough income to manage the payments.

Others choose a lifetime mortgage in Sunderland, such as a retirement interest-only mortgage, which requires monthly interest payments and is repaid when the home is eventually sold.

A different option is a lifetime mortgage, available to those aged 55 or over. It’s a form of equity release in Sunderland that lets you access tax-free cash from your home.

There are no monthly repayments unless you choose to make them, and the loan is typically settled when you pass away or move into long-term care.

How Much Can You Borrow?

How much you can borrow depends on the type of mortgage you choose, your age, and your income. With standard mortgages and retirement interest-only deals, your affordability is the main factor.

For equity release products like lifetime mortgages, lenders also consider your age and the value of your home; older borrowers usually qualify for larger amounts.

What Affects Your Affordability?

Your affordability will be shaped by:

  • The size and type of your pension income
  • Any outstanding debts or financial commitments
  • The value and condition of your property
  • Your age and how long the term would run
  • Whether you’re applying alone or with a partner

Even if you’ve been turned down elsewhere, there are specialist lenders who cater specifically to later life borrowers.

Date Last Edited: 03/06/2025