Your home may be one of your biggest assets, but how does it fit into your wider retirement plan? From standard mortgages to retirement interest-only mortgages and lifetime mortgages (equity release), there are more options than many people realise.
Estimated read time: 4 minutes
If you are in your 50s, 60s, 70s or beyond, you may assume that mortgage options become much narrower as you approach or move through retirement. That used to be a common view. Today, the later-life lending market is changing, and many homeowners have more choices than they may realise.
That does not mean borrowing in later life is right for everyone. It does mean it is worth understanding the full picture before making decisions about your home, your income, your family and your future lifestyle.
Why later-life lending is getting more attention
Recent research has highlighted a familiar challenge: many people are approaching retirement with a gap between the income they would like and the income their pensions and savings may provide. At the same time, many homeowners have built up significant value in their property.
Fairer Finance research commissioned by the Equity Release Council found that 46% of homeowner households aged 55 to 79 could have retirement incomes below the Pensions UK moderate retirement living standard, despite many holding meaningful housing wealth. The same research suggested single women may be particularly affected, with 65% of single female homeowners aged 55 to 79 expected to fall below that moderate benchmark.
It is also clear that the market is becoming more active again. Equity Release Council figures for Q2 2026 reported total lending of £597 million, with overall customer numbers rising to 13,489 and new customer activity increasing by 9% compared with the previous quarter. Even so, the average new lump-sum loan reduced, while drawdown activity remained important, suggesting many people are still taking a cautious and flexible approach.
Your home is part of the picture, not the whole plan
For some people, property wealth can play a useful role alongside pensions, ISAs, investments and savings. It might help top up income, fund home improvements, support care needs, help family members, or provide more flexibility in retirement.
But accessing money from your home is a major decision. Before looking at any specific mortgage option, it is important to consider the alternatives too. Could downsizing free up money and reduce running costs? Would moving to a different area make life easier or more affordable? Could taking in a lodger, renting a room, working a little longer, using other savings, changing investment withdrawals or adjusting your spending achieve the same aim? For some people, even moving overseas may form part of a wider retirement plan.
This is where cashflow planning can be valuable. By mapping out your expected income, spending, assets and future needs, you can see how different choices may affect you over time. It can also help you understand the impact on your estate, your tax position, your family and your long-term security.
Standard mortgages may still be possible later in life
Many lenders will now consider mortgage terms that extend into retirement, provided the borrowing remains affordable and suitable. This can be relevant if you are moving home, remortgaging, helping adult children, dealing with divorce or separation, relocating in retirement or restructuring existing borrowing.
For older borrowers, lenders may take account of different types of income, including pension income, investment income, rental income and continued employment or self-employment income. The key question is not simply your age, but whether the mortgage is affordable now and in the future.
Retirement interest-only mortgages
A retirement interest-only mortgage, often called a RIO mortgage, may suit some people who have reliable income in retirement and want to continue making monthly interest payments. The loan itself is usually repaid when the property is sold, when the borrower moves into long-term care, or when they die.
Because the interest is paid each month, the loan balance does not usually grow in the same way as a lifetime mortgage (equity release) where interest may be rolled up. This can help preserve more of the property value for future choices or inheritance, but it does rely on being able to keep up the monthly payments.
Lifetime mortgage (equity release)
A lifetime mortgage (equity release) allows homeowners, usually aged 55 or over, to access some of the value tied up in their home while continuing to live there. The money may be taken as a lump sum, in smaller amounts over time, or a combination of both depending on the product.
Monthly repayments are not usually required, although some plans allow voluntary payments or interest payments. If interest is rolled up, the amount owed can grow over time and reduce the value of your estate. A lifetime mortgage (equity release) can also affect entitlement to means-tested benefits and may reduce the inheritance you leave.
That is why it should never be viewed in isolation or as an automatic answer. It may be suitable in some circumstances, but only after other options have been explored and the long-term impact has been clearly explained.
What professional advice can help you decide
Good advice should start with your goals, not with a product. What do you want your retirement to look like? How much flexibility do you need? Are you hoping to help family? Would you prefer to move, stay where you are, or keep your options open? How important is leaving an inheritance?
By considering your pension income, savings, investments, property, spending plans and future needs together, professional advice can help you weigh up the trade-offs. The right choice may be to borrow. It may be to downsize, adapt your spending, use other savings first, restructure existing borrowing, or do nothing for now.
The important thing is that you do not have to make these decisions alone. Later-life lending is evolving, but the best decisions are still the ones made calmly, with a clear understanding of the options, costs, risks and long-term consequences.
At Insight, your independent financial adviser can help you look at the bigger picture and understand which options may be suitable for you. Where mortgage advice is needed, we can also draw on the expertise of our mortgage advisers. If you, or someone in your family, would benefit from financial or mortgage advice, please get in touch.
FAQs
Can I get a mortgage after 60?
Possibly. Some lenders will consider borrowing into retirement, depending on your income, affordability, age, property and circumstances.
What is the difference between a RIO mortgage and a lifetime mortgage (equity release)?
With a RIO mortgage, you usually pay the interest each month and the loan is repaid when the property is sold, you move into long-term care, or you die. With a lifetime mortgage (equity release), monthly repayments are not usually required, so interest may roll up and increase the amount owed over time.
Is using property wealth always a good idea?
No. It depends on your wider financial position, goals, health, family circumstances and future plans. It is important to compare it with other options, such as downsizing, using savings, changing withdrawals, renting a room or adjusting your spending.
Could a lifetime mortgage (equity release) affect my benefits or inheritance?
Yes. It may affect entitlement to means-tested benefits and could reduce the value of your estate. This should be considered carefully before any decision is made.
Where should I start?
Start with your retirement goals and a clear cashflow plan. This can help you see whether borrowing, downsizing, using other assets or simply waiting is likely to be the most suitable route.
Sources and further reading:
https://www.equityreleasecouncil.com/documents/q2-2026-lending-data-full-report/
https://www.equityreleasecouncil.com/wp-content/uploads/2026/08/Q2-2026-market-report.pdf
https://www.fairerfinance.com/downloads/the-retirement-compass_june-2026.pdf
https://www.fca.org.uk/publications/market-studies/ms26-1-later-life-mortgages-market-study
Disclaimer: Information is based on publicly available data and government announcements at the time of writing (September 2026) and may be subject to change.
Risk warnings: Your home may be repossessed if you do not keep up repayments on your mortgage. Using equity in your home will affect the amount you are able to leave as an inheritance. Any means tested state benefits (both current and future) may be affected by any equity released. This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Taking money from your home is a long-term commitment and may limit your future choices. The FCA do not regulate buy-to-let mortgages or estate planning and cashflow modelling. Professional advice should be taken before making any decision. This content is for information only. It is not personal financial advice – please speak with us, or another qualified adviser, before making decisions about your pension. The value of your pension can go down as well as up, and you could get back less than has been paid in. You can usually only access money in a pension from age 55, rising to 57 from April 2028, unless your plan has a protected pension age. Tax treatment depends on your individual circumstances and may change in the future.