What is a traditional mortgage for over 55s?

It is a long-term loan that allows you to purchase a new property, refinance an existing property or consider investing in a buy-to-let. It might be the right option for you if you have a source of income.

Who can get one?

A traditional mortgage could be the right choice for you if you:

  • are still in employment
  • have a guaranteed income in retirement that will allow you to afford the required monthly payments.

Our Later Life Lending Service

Royal London is customer-owned, so you can trust that your needs are at the heart of everything we do. We take pride in offering choice and have made sure that our partners work as hard as we do when it comes to providing the very best service.

We have chosen to partner with specialist broker Responsible Life to deliver the Later Life Lending Service. They have years of experience and success in helping their customers to consider their financial options and use their property to achieve their goals.

Key features of a traditional mortgage

  • Different repayment options to suit different needs, including capital repayment and interest-only

  • Option to fix the interest rate for a set period, such as two or five years

  • Ability to set the term.

Important things to know

  • Taking a lump sum against the value of your home could affect your entitlement to means-tested benefits
  • If you do not keep up with the payments on your mortgage, then your home may be at risk of repossession
  • If your case completes Responsible Life will charge an advice fee, currently not exceeding £1,690.

Talk to our partner Responsible Life

Got a question about your later life lending options? The UK-based Responsible Life team are here to give you the information you need so that you can be sure you choose the right solution for you.

0800 023 9315

Lines are open Monday to Friday, 9am to 8pm and Saturday, 9am to 5pm, excluding bank holidays.

Or if you prefer, you can schedule an appointment for the Responsible Life Information Team to call you back.

The advice process

Speak to Responsible Life

Call the Responsible Life Information Team, based in the UK.

Consider options with an adviser

The Information Team can arrange a no-obligation appointment with a fully qualified mortgage adviser.

Make an application

Your adviser will help you through every stage of the application process.

Frequently asked questions about mortgages for over 55s

The amount that you could borrow will depend on your property value and your income, as well as the outcome of any required affordability checks.

How your mortgage will be repaid depends on the product that you choose. A capital repayment mortgage involves making payments towards both the capital and the interest and the full amount will be repaid by the end of the mortgage term, provided you didn’t miss any payments.

With an interest-only mortgage, however, you only need to make payments towards the interest each month. The initial amount borrowed will then need to be repaid in one lump sum at the end of the mortgage term, either by selling the property or utilising other funds such as investments.

Age limits for traditional mortgages will vary between lenders. Some lenders may allow you to consider a mortgage that runs until your 95th birthday. However, the older you get, the higher your repayments may be.

A Responsible Life adviser will be best placed to tell you more as they can advise on products from multiple lenders.

Yes. With a traditional mortgage, you are committing to making a payment each month. If you do not keep up with the required repayments, there will be a risk of losing your home.

Yes, many lenders will offer rates that are fixed for a period of time, such as two or five years.

There are several costs that could be involved when considering this product option. As part of the application process, consider whether there will be related fees in having the property valued, costs charged in the engagement of a solicitor, and an application fee charged by the lender. If purchasing a property, then potential stamp duty and conveyancing fees should also be within your thoughts.

When enquiring through our Later Life Lending Service, there is also the advice fee to bear in mind. The advice fee charged will depend on the product that you choose and the complexity of your case, but the provider of our service, Responsible Life, guarantee that it won’t exceed £1,690. By charging a capped rate as opposed to a percentage of the amount borrowed, you won’t pay more simply for wanting to borrow more. The advice fee can be paid with existing funds, or you can choose to add it into the amount borrowed.

More on using your property in retirement

Looking for something different?

If you're not sure whether a traditional mortgage is for you, there are other later life lending options you could consider instead.

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.

If you take out a product recommended by Responsible Life, Royal London Marketing Limited will receive a fee, for this introduction, based on a percentage of the eventual loan. 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. Registered office: 55 Gracechurch Street, London, EC3V 0RL.

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. Responsible Life's registered office is: Mills Bakery, Royal William Yard, Plymouth, PL1 3GE. Registered in England & Wales. Company number 716225