Getting a mortgage when retired can seem more complicated, but there are flexible options available to support borrowers aged 50+.
Whether you’re looking to remortgage, move to a new home, or release equity, lenders are increasingly open to supporting retired applicants.
If you’re exploring your mortgage options in Leicester after retirement, it’s important to understand how the criteria differ and what products are available.
Can You Get a Mortgage After Retiring?
Yes, you can. Many lenders now offer mortgage products that support borrowers beyond retirement age.
Rather than relying on employment income, they will assess your pension income, savings, investments, or other long-term financial sources.
For traditional residential mortgages in Leicester, the main consideration is affordability.
Lenders want to be confident you can maintain regular monthly payments, usually through income such as private or state pensions.
For equity-based products, the focus tends to be on your age, the value of your property, and how much equity you hold.
Common Reasons for Mortgages in Retirement
There are several reasons someone may want to explore mortgage options after retirement, particularly for those living in or moving home to Leicester:
Downsizing or Moving Home
You may be looking to downsize to a more manageable home or relocate closer to family. Even if you’re selling your current property, the new purchase might require additional borrowing.
Bridging a Property Sale
If your current home hasn’t sold, but you’ve found your next property, a bridging loan in Leicester could help.
This short-term option allows you to complete the purchase while waiting for your existing home to sell.
Supporting Family Financially
Some homeowners look at equity release in Leicester to help children or grandchildren with their own property purchases. Others may use the funds to contribute towards education or other family needs.
Renovating or Adapting the Home
Over time, accessibility becomes more important. A mortgage in retirement can help fund home improvements such as stairlifts, walk-in showers, or wider doorways to make life easier.
Covering Unexpected Expenses
Larger one-off costs like medical treatments, care costs, or emergency repairs may prompt you to explore further borrowing options.
This is where remortgaging or taking a further advance could provide the funds you need.
Mortgage Options for Retired Borrowers in Leicester
Standard Residential Mortgages
If you have a stable pension income and strong credit, it may be possible to take out a traditional repayment mortgage, even in retirement.
Terms may be shorter, and affordability checks will focus on your post-retirement income, but it can be a viable option.
Retirement Interest-Only Mortgages in Leicester
A Retirement Interest-Only mortgage (RIO) allows you to pay interest each month, with the loan repaid when the property is eventually sold.
These products are popular among retirees in Leicester who want to minimise their monthly outgoings while staying in their home.
Equity Release (Lifetime Mortgages)
Equity release in Leicester offers a way to unlock the value of your property without needing to move.
With a lifetime mortgage, there are no required monthly payments unless you choose to make them. The loan is typically repaid from the sale of your home when you pass away or move into long-term care.
Home Reversion Plans
A less common form of equity release, home reversion plans involve selling all or part of your home to a reversion provider in exchange for a lump sum or regular payments.
You retain the right to live in the property rent-free for life, but give up ownership of the agreed portion.
Bridging Loans for Retirees
Bridging loans in Leicester are commonly used by retirees looking to secure a new property before their existing one sells.
These are short-term solutions and are usually repaid when the original home is sold, but they require a clear exit strategy and come with higher interest rates.
Tailored Advice for Mortgages Over 50 in Leicester
When looking for a mortgage in retirement, it helps to speak with an advisor who understands the nuances of age 50+ mortgages.
From income changes to long-term affordability and inheritance planning, there’s more to consider than just rates and repayments.
We work with lenders who offer specialist mortgages for over 50s in Leicester, including flexible options that suit a wide range of financial needs.
Whether you’re exploring RIO products, lifetime mortgages, or need help with a property purchase later in life, our team can guide you through each step.
Date Last Edited: October 27, 2025
