What is a Retirement Mortgage?
A Retirement Mortgage is a standard capital-and-interest mortgage adapted for older borrowers.
You borrow a lump sum secured against your home and make monthly repayments that cover both interest and capital. Over time, the loan reduces and may be fully repaid by the end of the term.
You remain the legal owner of your home.
Unlike Lifetime Mortgages or Home Reversion plans, this is not equity release, it is a conventional mortgage product.
How does it work?
- Your income and affordability are assessed.
- You borrow a lump sum secured against your home.
- You make monthly repayments covering both capital and interest.
- The mortgage is repaid over an agreed term.
Because you are repaying capital, the loan balance reduces over time.
You must demonstrate that repayments are affordable throughout the mortgage term.
Who might it suit?
A Retirement Mortgage may be considered by people who:
- Have stable retirement income.
- Prefer a structured repayment plan.
- Want to reduce their mortgage balance over time.
- Do not wish to use an equity release product.
It is not suitable for everyone, and advice is essential.
Things to consider
- Monthly repayments are required.
- Your home may be at risk if payments are not maintained.
- Affordability is assessed based on income.
- Early repayment charges may apply depending on the product.