9th April 2026
Discover how pension income can be used to secure a mortgage in later life.
We know that planning for later life often involves re‑thinking your finances - including the role your home and pension income might play. Many people assume that once they retire, their ability to borrow ends. In reality, mortgage options can remain open in later life, and pension income is often considered a reliable source when assessing affordability. If you think you can't get a mortgage using pension interest, think again.
Many lenders will consider pension income when reviewing a mortgage application. Pension payments are often viewed as stable and predictable, which helps lenders judge whether repayments will remain affordable over the long term.
However, borrowing later in life may involve additional checks. Some lenders set age limits to ensure the mortgage can be repaid within the term, and income levels in retirement may affect how much you can borrow.
Later life lending has expanded in recent years, giving borrowers a wider range of choices to suit different financial needs.
Retirement Mortgages
Retirement mortgages are designed for those transitioning into, or already in, retirement. They may feature flexible underwriting to account for income changes from employed to pension.
Retirement Interest Only - (RIO) Mortgages
RIO mortgages require borrowers to pay only the interest each month. There is no fixed term, and the capital is typically repaid when the property is sold, often after the death of the final borrower. They have fixed and variable rate options over short to medium terms, so can allow flexibility if future plans are uncertain.
Lifetime Mortgages (Equity Release)
A lifetime mortgage is a form of equity release that lets homeowners aged 55+ unlock value from their home without having to make monthly repayments. Instead, interest rolls up over time, and the loan is repaid when the home is sold (typically after moving into long-term care or at the end of life).
Lifetime mortgages differ from RIOs because monthly payments are optional. If a borrower doesn’t pay, interest is added to the debt meaning it can significantly increase over time. The interest rates on lifetime mortgages are generally higher than on RIOs but are fixed for life. This provides certainty but reduces flexibility if circumstances change and you want to repay the debt.
We understand that later life brings unique financial needs - and that one size doesn’t fit all. That’s why we offer a dedicated range of mortgages for customers aged 55 and over, each designed to support different stages of retirement.
Our Into Retirement Mortgages are created for customers transitioning from work into retirement This product offers flexibility with no maximum age criteria, supporting borrowers whose income blend may be changing.
Our In Retirement Mortgages are designed for those already relying on pension income, this range also features no upper age limit and includes both discount and fixed options for stability.
We also offer Retirement Interest Only (RIO) Mortgages for clients looking to keep their monthly outgoings as low as possible. With a RIO mortgage, borrowers make interest‑only payments each month which are often much less than the monthly payments required on a standard mortgage - while the loan balance is repaid later from the sale of the property.
We’re committed to personally underwriting every single case, ensuring we understand your full financial picture. Whether you’re planning to borrow beyond age 75, stretch your retirement income further, or release capital for lifestyle or family needs, we tailor our decisions to your real-world circumstances.
If you're exploring how a mortgage could support your retirement plans - whether you're approaching retirement or already enjoying it - our team is here to guide you. Get in touch to learn more about our later life mortgage options and how we can help you plan with confidence.
Product details correct at time of writing (April 2026).