Traditional mortgage types can still be suitable for those over the age of 55

If you’re a UK homeowner over the age of 55, there are a variety of mortgage products available to you. You could consider a Lifetime Mortgage or a Retirement Interest-Only Mortgage, but for some a more traditional mortgage type could still be suitable.

How do mortgages work?

A mortgage is most likely the way that you purchased your home. You might even have heard the words ‘capital repayment’ and ‘interest-only’, but what exactly do they mean?

Capital repayment mortgage

A capital repayment mortgage involves paying off the interest and part of the amount borrowed or capital each month. By the end of a defined period of time, so long as you kept up with your repayments, you will no longer owe anything on the mortgage.

Interest-only mortgage

An interest-only mortgage means that you will only need to pay the interest on your mortgage monthly. The initial amount borrowed will still be outstanding at the end of a defined period, so you should carefully consider your repayment strategy when discussing this type of mortgage.

How do traditional mortgages work for over-55s?

Choosing one of these more traditional mortgage types could be for you if you:

  • are still in employment
  • have a guaranteed income in retirement and can afford the monthly payments.

The Royal London Later Life Lending Service is provided by Responsible Life, who are there to help you explore the retirement lending options available to you.

The easiest way to determine what type of product would be right for you is by getting in touch with Responsible Life today. Their Information Team can answer your initial questions and book you your free, initial no-obligation appointment with a fully qualified mortgage adviser.

Your adviser will be best placed to consider your personal circumstances and help you to decide what approach is right for you. To get in touch today, call 0800 023 9313.

If you choose a mortgage with required repayments during your lifetime then your home may be repossessed if you do not keep up with the payments.

Frequently asked questions about mortgages for over 55s

This will vary between lenders – some might allow you to consider a mortgage that runs until your 95th birthday, but the older you get when you consider a mortgage, the higher your repayments might be. This could lead to stricter affordability checks. A Responsible Life adviser will be better placed to tell you more.

The amount available for you to borrow will depend on your property value and your income, as well as the outcome of any affordability checks.

Yes, most lenders will offer fixed rates for a period of time.

Yes. With these mortgages, you are committing to making a payment each month. If you do not keep up with these, there will be a risk of losing your home.

How your mortgage is repaid would depend on the type that you chose. With a capital repayment mortgage, so long as you kept up with your payments it will be repaid by the end of your agreed period. With an interest-only mortgage, the initial amount borrowed will need to be repaid after an agreed period of time – some people will choose to move to a cheaper home and repay this way. Your adviser may also be able to let you know about products that involve a mixture of the two repayment options.

This will vary between lenders – some might allow you to consider a mortgage that runs until your 95th birthday, but the older you get when you consider a mortgage, the higher your repayments might be. This could lead to stricter affordability checks. A Responsible Life adviser will be better placed to tell you more.

The amount available for you to borrow will depend on your property value and your income, as well as the outcome of any affordability checks.

Yes, most lenders will offer fixed rates for a period of time.

Yes. With these mortgages, you are committing to making a payment each month. If you do not keep up with these, there will be a risk of losing your home.

How your mortgage is repaid would depend on the type that you chose. With a capital repayment mortgage, so long as you kept up with your payments it will be repaid by the end of your agreed period. With an interest-only mortgage, the initial amount borrowed will need to be repaid after an agreed period of time – some people will choose to move to a cheaper home and repay this way. Your adviser may also be able to let you know about products that involve a mixture of the two repayment options.

Got a question about traditional mortgage? The Responsible Life team are here to help.

0800 023 9313

Free from UK landlines and mobiles

Mon to Fri: 9am-8pm. Sat: 9am-5pm.

Royal London have chosen Responsible Life to provide our customers with advice on Later Life Lending products. The Royal London Mutual Insurance Society Limited has a 30% shareholding in Responsible Life and Responsible Lending (Responsible Group) and are part of the same group under FCA disclosure rules.

Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205. 

To understand the features and risks, ask for a Personalised Illustration. Responsible Life’s adviser will talk through the setting up costs of a mortgage before you make any decision to proceed. Only if you choose to proceed and your case completes will Responsible Life charge an advice fee, currently not exceeding £1,490.

If you take out a product recommended by Responsible Life, Royal London Marketing Limited will receive a fee, for this introduction. If you would like further details about this fee, Responsible Life will be able to provide you with this. More information about Responsible Life and how your information is processed is available on their privacy notice. Find out how Royal London manages your personal data.

Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority, registration number 302391. Registered in England and Wales number 4414137.

Responsible Life's registered office is: Mills Bakery, Royal William Yard, Plymouth, PL1 3GE. Registered in England & Wales. Company number 7162252.