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Mortgages for over 55s

Later Life Lending and Equity Release

Whether you're 55, 65 or already retired, our specialist advisers can help with retirement interest-only mortgages and standard mortgages that run to age 80 and beyond. If a lifetime mortgage (equity release) suits you better, we'll refer you to a qualified equity release partner.

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Find Your Mortgage Options

Find Your Mortgage Options

Find Your Mortgage Options

Find Your Mortgage Options

Find Your Mortgage Options

Find Your Mortgage Options

Find Your Mortgage Options

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Later Life Lending Options

If you're over 55, there are 5 primary mortgage types to consider, available for either individual or joint applications:

We work with clients locally in Sheffield who are approaching retirement and exploring later-life lending or equity release, alongside clients across the rest of the UK. Wherever you're based, the advice process is the same.

Retirement Interest-Only Mortgages

Also called later life interest-only mortgages. Designed for borrowers aged 55 and over, you pay only the interest each month and there's no fixed end date: the loan is normally repaid from the sale of your home when you die or move into long-term care.

Lifetime Mortgages (Equity Release)

A lifetime mortgage lets you release tax-free cash from your home with no monthly repayments required. We don't advise on equity release ourselves: we refer you to a qualified partner who specialises in lifetime mortgages.

Standard Repayment Mortgages

Many lenders now lend on a standard repayment basis to age 80 and beyond, for applicants who meet their criteria and pass affordability checks.

Interest-Only Arrangements

For suitable candidates, an interest-only arrangement might be appropriate. These mortgages include a termination date when the principal amount must be settled.

Blended Mortgage Solutions

Options such as combined repayment and interest-only arrangements are also accessible for those aged over 55.

How Can Friends Capital Help with Later Life Lending?

At Friends Capital, we understand that mortgage needs change as you approach or enter retirement. Our specialist advisers have extensive experience in later life lending and can help you navigate the unique challenges and opportunities available to over 55s borrowers. We can:

  • Find lenders with higher maximum age limits for mortgage terms
  • Explain how different lenders assess retirement income
  • Provide advice on the most suitable type of mortgage for your later life plans
  • Explain the pros and cons of equity release and lifetime mortgages, and refer you to a qualified partner if that is the route you want to explore
  • Assist with mortgage options if you're already retired
  • Guide you through the entire application process, handling all paperwork and lender communications

Our goal is to ensure you have the right mortgage solution that provides security and peace of mind in your later years, whether you're planning for retirement, already retired, or looking to help family members get on the property ladder.

Equity Release (Lifetime Mortgages)

A lifetime mortgage, also called an equity release mortgage, lets homeowners aged 55 and over access some of the value tied up in their home as a tax-free lump sum or in smaller amounts over time, while continuing to live there. Interest is usually added to the loan rather than paid monthly, and everything is repaid when you die or move into long-term care.

We refer equity release to a specialist. We don't advise on equity release ourselves. If it looks like the right route for you, we refer you to a qualified equity release partner. Their fee is capped at £1,795 and is payable only on completion, there's never an upfront payment, and your first consultation is free.

Key benefits

  • ✓Stay in your home: continue living in your property for life with a lifetime mortgage.
  • ✓Tax-free cash: the money you release isn't subject to income tax or capital gains tax.
  • ✓No monthly repayments: with most plans, you don't need to make monthly payments.
  • ✓Flexible options: a lump sum, regular income or a drawdown facility.
  • ✓No negative equity: with an Equity Release Council product, you'll never owe more than your home is worth.

Is it right for you?

Equity release can suit you if you're 55 or over, own your home and want to access cash without moving. It's important to understand the implications and the alternatives, which often include the later life mortgages above.

Important: equity release may affect your entitlement to means-tested benefits and will reduce the value of your estate. We recommend discussing it with your family and taking independent legal advice.

How the process works with our partner

  1. 1

    Initial consultation: free and no-obligation, to see whether equity release suits you.

  2. 2

    Illustration and quotation: the partner researches the market and shows you how much you could release, and what it would cost.

  3. 3

    Family discussion: time to talk it through with your family, with information for them too. No pressure to proceed.

  4. 4

    Legal process: independent legal advice and a valuation are arranged, and the application is submitted.

  5. 5

    Completion: the funds are released to you.

  6. 6

    Ongoing support: annual reviews and help with any queries throughout the life of the plan.

What you'll understand before you decide

  • ✓How much equity you could release
  • ✓The different types of lifetime mortgage
  • ✓How interest works, and your repayment options
  • ✓The impact on your inheritance and your family's future
  • ✓How it might affect any means-tested benefits
  • ✓The safeguards that come with modern equity release

Your Guide to Equity Release

Read our free guide at your own pace, then talk it through with us.

Download the guide (PDF)

Prefer to read online? Read our guide to lifetime mortgages →

Frequently asked questions

Get answers to common questions about later life lending, mortgages for over 55s and equity release.
Is there an age limit for getting a mortgage?
There's no universal age limit, but most lenders have a maximum age at application (typically 65-80) and a maximum age at the end of the mortgage term (typically 70-85). Some specialist lenders have no upper age limit, particularly for retirement interest-only mortgages. We can help you find lenders with age criteria that suit your circumstances.
How is retirement income assessed for mortgage applications?
Lenders will look at your current income and your projected retirement income if the mortgage extends into retirement. This typically includes state pension, private/workplace pensions, investment income, rental income, and other regular sources. Some lenders are more flexible than others in how they assess retirement income, and we can guide you to those most suitable for your situation.
What's the difference between a retirement interest-only mortgage and equity release?
With a retirement interest-only (RIO) mortgage, you make monthly interest payments, and the loan is repaid when you sell your home, move into care, or pass away. With equity release, you don't make monthly payments; instead, the interest rolls up and is added to the loan, with everything repaid when you sell, move into care, or pass away. RIO mortgages typically allow you to borrow less but cost less over time, while equity release offers more flexibility but the debt grows over time.
Can I get a mortgage if I'm already retired?
Yes, many lenders offer mortgages to those already in retirement. The key factor is having sufficient, stable retirement income to meet the mortgage payments. Lenders will assess your pension income, investments, and any other regular income sources. Some specialist later life lenders have products specifically designed for retirees.
Can I use my pension lump sum as a deposit for a mortgage?
Yes, you can use a pension lump sum as a deposit. However, lenders will still need to be satisfied that you have sufficient ongoing income to meet the mortgage payments. It's important to consider the tax implications and the impact on your long-term retirement income before using pension funds for property purchase.
How can I help my children or grandchildren get on the property ladder?
There are several options, including: 1) Family offset mortgages, where your savings reduce the amount of interest they pay, 2) Joint mortgages, where you're named on the mortgage alongside them, 3) Guarantor mortgages, where you guarantee their mortgage payments, 4) Gifting a deposit from your savings or equity release funds. Each option has different implications for you and the younger family member, and we can help you understand which might be most suitable.
Will equity release affect my benefits or pension?
The money you release is tax-free, and it does not affect your State Pension, which is not means-tested. It can, however, affect means-tested benefits such as Pension Credit and Council Tax Reduction, because releasing a lump sum increases the capital you hold. This is one of the things the equity release adviser will check against your own circumstances before recommending anything.
What can I use the money for?
You can use the funds for a variety of purposes, such as helping children or grandchildren with university fees or house deposits, making home improvements, paying off your mortgage or other debts, funding a holiday, or simply enjoying greater financial freedom in retirement.
What does equity release advice cost?
We don't advise on equity release ourselves. We refer you to a qualified partner who specialises in it. Their fee is capped at a maximum of £1,795 and is payable only on successful completion. You'll never be asked for any upfront or advance payment for that advice, and your initial consultation is free.
Are there any risks I should be aware of?
Yes. A lifetime mortgage is a long-term commitment that builds up interest and is secured against your home. Equity release may reduce the value of your estate, and your home could be at risk if you do not keep up repayments on a mortgage or other loan secured against it. That's why professional advice is essential to decide whether it's right for your circumstances.

Reviewed by Zoe White CeMAP, Compliance Officer, Friends Capital. Last reviewed October 2026.

Ready to Explore Your Later Life Mortgage Options?

Our specialist advisers understand the unique needs of over 55s borrowers and can help you find the right mortgage solution for your circumstances and goals.