Last updated: 25 November 2025.
We’re living longer,* working for longer,** and can’t access our state and private pensions until later.***
In 1990, an average first time buyer would have expected to pay off their mortgage by age 53. By 2022 this had risen to 65.****
With properties getting more expensive, and mortgage terms getting longer for affordability, it’s not surprising that many people will have a mortgage in, or into, retirement.
People are also increasingly gifting deposits to their offspring to allow them to get onto the housing ladder. These gifts are often funded from the equity in their home.
Things borrowers might want to do:
- Move home
- Change to a new product, or remortgage to a new lender
- Free up equity from your home to fund gifted deposits to offspring
- Free up equity for a lifestyle purchase, or to make your home more accessible
- Change your mortgage term or repayment type, e.g. switching from repayment to interest only, or vice versa.
What is later life lending?
There is no set definition of ‘later life lending’ and it can vary from lender to lender. Some lenders only provide products for people aged over 55 and they will therefore define those borrowers as ‘later life’. High street banks and building societies may use the phrase for a borrower who is already retired, or, someone whose mortgage term will take them into retirement.
Why do some mortgages have a maximum age limit?
Many mortgage lenders used to see older borrowers as higher risk. This was because they’d no longer be receiving a regular salary at the end of each month. Without this monthly income it was harder for lenders to check that the borrower would be able to keep up with mortgage repayments.
What is the age limit on a mortgage?
Each lender – bank or building society – will decide their maximum age limit for mortgages. The age limit is either determined by the age the applicant is when taking out the mortgage, or their age at the end of their term.
For example, one lender may refuse applications from anyone over a certain age such as over 75. Another may refuse applications from those who would be 75 by the time the mortgage term ends.
So, a 60-year-old may be accepted for a 5-year term, but may not be allowed a mortgage term of 30 years.
Whether there is a maximum age for a mortgage will depend mostly on the lender and what they are prepared to offer. It will also take into account the individual’s circumstances and borrowing needs.
What is Suffolk Building Society’s mortgage age limit?
At Suffolk Building Society we have no maximum age limit on our mortgage products. The only exception is Joint Borrower Sole Proprietor (JBSP) mortgages.
We look at applicants on their individual circumstances. If they meet our criteria and affordability, then age is not an issue.
We know that there are many reasons why an individual might be looking for a new mortgage in later life. It might allow them to stay in their family home or finance home improvements. They could fund a property following a divorce or separation or to help family members get on the property ladder. We want to be able to help our customers fulfil their dreams, take the next step in life’s journey, or support their families when needed.
Why would a lender choose to have no mortgage age limit?
By having no age limit on their mortgages, lenders are able to support people who wish to have a mortgage later in life, whatever their reasons.
Many lenders also view pensions as a stable source of income. After all, there is no risk of job uncertainty, no risk of a change in career with a reduced income, and no risk of health issues impacting earning ability. For these reasons, lenders are more flexible in their approach to mortgage limits; a pension can be a reliable and regular source of income.
However, it’s not just income sources that change at a certain age, outgoings often do too. Many of the lenders who are happy to lend to those going into retirement will be those who also have a manual lending approach. They will review all sources of income and expenditure to make sure the mortgage applicant can afford the repayments now as well as in the future, even if interest rates and circumstances should change.
Why do some mortgage providers have specific later life mortgage products and others don’t?
Some lenders only allow older borrowers access to a select number of mortgage products – often a ‘later life’ or similarly named, set of specific mortgages. Others offer older borrowers the same products as younger borrowers.
At Suffolk Building Society, our standard residential mortgages are available to all ages. This means that all borrowers have access to the same range of products. We think it makes it easier to understand what’s on offer and find the most suitable mortgage for borrowers’ circumstances.
Is there anything else an older borrower should know when it comes to a later life mortgage?
In addition to a standard residential mortgage, older borrowers might also like to consider a Retirement Interest Only (RIO) mortgage. With a RIO mortgage, the borrower only pays off the interest each month, not the loan itself. By only paying off the interest, the repayments are lower but ongoing, with the capital only repaid once the property sells, following the death of the last named borrower or a move into long term care.
*UK men and women can expect to live longer, data show – BBC News
**Is the rising state pension age making people have to work for longer? – Which?
***Check your State Pension age – GOV.UK
****Average age to pay off mortgage based on first-time age figures from English Housing Survey added to average mortgage term data for first-time buyers from UK Finance.
