Getting A Mortgage In Retirement

Retirement is a significant life milestone that often requires adjusting your finances. Many people worry about having a mortgage when they retire. In this guide, we'll look at ways to handle a mortgage during retirement.

Can retired people get a mortgage?

You can get a mortgage after you retire. Not all lenders offer them – some have maximum age limits, often set between 65 and 70 years old. However, many do, meaning you can still get a mortgage even after you stop working. The important thing is to show the lender that you can make the payments, even after you’ve retired.

There are several reasons to get a mortgage in retirement. You might want to move to your forever home, make improvements to your current home or finish paying off an interest-only mortgage.

How to get a mortgage in retirement

When looking for a mortgage in retirement in the UK, follow these steps:

Research different providers. Check what each lender offers. Some may have age limits or require proof of steady income, which can be challenging if you're nearing retirement.
Check your credit score. Look at your credit score and make sure it’s in a strong position. Maintaining a good credit score can help when getting a retirement mortgage.
Find age-friendly options. Look for lenders without age limits or with higher age limits for paying off the mortgage. Some offer special mortgages for retirees, like retirement interest-only mortgages. Use online price comparison tools to help with this.
Consider other factors. Pay attention to interest rates, term lengths and fees.
Consult a mortgage broker. They can search through various lenders to find the best mortgage for you.
Submit your application. Once you find the right mortgage deal, go ahead and apply.

This approach will help you find a suitable mortgage for your retirement.

Working out your retirement income

When getting a mortgage in retirement, you still need to show the lender that you can repay the loan.

To do this, calculate your retirement income. Consider these sources:

Income from private pension schemes you and/or your employer pay into
Income from State Pension
Income from property or investments

You can use an online pension calculator to get a forecast of your likely pension income.

After figuring out your total retirement income, provide proof to your lender. You can use a State Pension statement, an annuity statement or a pension forecast for your private pensions.

How to manage a mortgage in retirement

Here are some tips for managing your mortgage in retirement:

Extend the mortgage term. Some retirees extend their mortgage term to lower monthly payments. This helps in the short term but can increase total interest costs. Your age affects how long you can extend.
Remortgage. If your home's value has increased, the additional money built up might help you get a better mortgage deal. Plus, if interest rates have changed since you last remortgaged, you might be able to reduce your monthly repayments by switching to a new rate.
Retirement Interest Only (RIO) mortgage. With RIO mortgages, you pay only the interest each month, keeping costs low. The loan is repaid when your home is sold, usually after you pass away or move into long-term care. This might reduce what you can leave to your loved ones.
Downsize or sell. Selling your home and moving to a smaller, cheaper one can help to eliminate mortgage debt. Use the sale proceeds to buy a new home or pay off your mortgage.
Overpayments. If you haven’t yet retired and have access to cash through savings or investments, it might be worth making overpayments on your mortgage in the run-up to retirement. Typically, lenders will let you overpay by 10% of the remaining loan each year. The more you pay off your loan, the lower your monthly costs will be.
Budgeting. Make a retirement budget that includes mortgage payments and other essentials. This ensures your income covers all costs.
Seek professional advice. Talk to financial advisors or mortgage specialists for personalised guidance and options.

Here and ready when you are

Whether you have questions about a specific kind of mortgage or just want to find out more, the expert team are on hand to help.

Saga Mortgages is provided by Tembo. Your house may be repossessed if you do not keep up your mortgage repayments.

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Important

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up with payments on your mortgage. Saga Money may receive payment from Tembo if you get a mortgage offer via the Saga Mortgages service. This will not affect the amount you pay for the service.

Saga is a registered trading name of Saga Personal Finance Limited, which is registered in England and Wales (company number 3023493). Registered office 3 Pancras Square, London, N1C 4AG. Saga Personal Finance Limited is authorised and regulated by the Financial Conduct Authority under the registration number 178922.

Tembo Money Limited (12631312) is a company registered in England and Wales with its registered office at 18 Crucifix Lane, London, SE1 3JW. Tembo is authorised and regulated by the Financial Conduct Authority under the registration number 952652. Tembo Money was awarded Best Mortgage Broker at the British bank awards in 2022, 2023, 2024 and 2025.