How do retirement interest-only mortgages work?

Retirement interest-only mortgages are typically designed for people aged 55 or over. They differ from a retirement repayment mortgage as you only pay the interest on the loan each month. You then repay the initial loan amount in full at the end of your plan, usually from the sale of your home when the last remaining applicant passes away or moves into long-term care. Find out more in our guide.

How do lifetime mortgages work?

A lifetime mortgage is a loan secured against your home that gives you access to tax-free cash which you can use in a variety of ways. With all lifetime mortgages we recommend, you’ll still own your property and have the option to make reduced or no monthly repayments - although we'd recommend you do as this can help reduce your total cost of borrowing.

Can I get a mortgage at 55?

There’s no single mortgage age limit for later life lending. Lenders look at your age when you apply as well as how old you’ll be when your plan is scheduled to end and make their decision on a case-by-case basis, with limits varying between providers. Most do have some form of a mortgage age limit, though. Conventional mortgage lenders have traditionally been reluctant to lend to those in later life due, in part, to affordability checks. Retirement repayment mortgage affordability checks look at income and expenditure. With later life mortgages, there aren’t the same restrictions regarding the upper age limit for a mortgage in the UK. As long as the youngest applicant is 55 or over, you could be eligible for a later life mortgage. You can get a later life mortgage at 55.

Mortgages For Over 60s | Later Life Mortgages

Q: Are later life mortgages regulated?

Yes, later life mortgages are regulated.

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Retirement mortgages are secured loans. Your home may be repossessed if you do not keep up repayments on your residential mortgage.

What is a retirement mortgage?

A retirement mortgage is a mortgage designed for UK homeowners aged 55 or over. It allows you to borrow money based on the value of your home, while continuing to live there. It could help you:

Remortgage your current property in later life when traditional providers don't offer products to older customers
Buy a new property - at Key, we don't believe you can ever be too old to move home
Access funds tied in the value of your home to make home improvements, for example

The main differences between the retirement mortgages available include:

How much you repay each month on your retirement mortgage

When you repay your retirement mortgage

Whether your retirement mortgage is subject to affordability checks

What protections you’re guaranteed with your retirement mortgage

The amount you could borrow will depend on several factors including:

Which type of mortgage you apply for
Your age
The value of your home
Your affordability

Try our free retirement mortgage finder

What are the different types of retirement mortgages?

There are a two different retirement mortgage options to choose from within Key Group, retirement mortgages, and retirement interest-only (RIO) mortgages.

Retirement mortgage

Higher age limit than most mortgages
Remortgage in retirement
Pay both interest and capital monthly

Retirement interest-only mortgage (RIO)

For homeowners aged over 55
Only pay the interest monthly
Lower monthly repayments than repaying the capital and interest

Find out more

ⓘ Our £1,699 advice fee is only payable on completion of a retirement mortgage. Speaking to a qualified mortgage adviser ensures you fully understand the features, benefits and drawbacks and all of your other later life finance options, helping you make an informed decision.

Read our free expert later life finance guide

Our comprehensive guide to later life finance can help you get a better understanding of your options.

From mortgages and equity release to wills and lasting powers of attorney, we give you all the information you need to make smart, well-informed decisions about your finances.

Read our free guide

Why choose Key as your retirement mortgage adviser?

At Key, everything we do is built around three principles: being honest, personal and trusted. That’s why thousands of homeowners turn to us for retirement mortgage advice.

Honest

Clear explanations in plain English
Your questions answered
No pressure to proceed

Personal

Advice tailored to your circumstances
Options aligned to your retirement plans
Support every step of the way

Trusted

We've won 80+ awards
Rated 'Excellent' on Trustpilot
1 million+ people helped

Retirement mortgage FAQs

When it comes to finding the right option for over 55s, we understand that you may have questions too. To help, we have compiled the answers to the questions we get asked the most. If you are still unable to find the information you're after, we are just a phone call away.

A retirement repayment mortgage is similar to a conventional mortgage. You make monthly capital and interest repayments until the end of your plan.

In later life, it can be difficult to get accepted for a traditional 25-year mortgage. With a retirement repayment mortgage, the loan can be better tailored to your age and needs. It could help you remortgage on your current property, or buy a new one in later life.

A retirement interest-only (RIO) mortgage lets you pay the interest each month, without reducing the original loan amount.

The full balance is usually repaid when your home is sold. This often happens if the last borrower passes away or moves into long-term care.

Find out more in our guide.

Yes, it may be possible to get a mortgage at 55.

There’s no single mortgage age limit in the UK. Lenders usually consider your age when you apply and how old you’ll be at the end of the term. Criteria can vary between providers.

Standard mortgages can be harder to access later in life due to affordability checks based on income and outgoings, especially if you're retired or nearing retirement.

Later life mortgages are designed for homeowners aged 55+. If the youngest applicant is 55 or over, you could be eligible, depending on your circumstances.

Yes, later life mortgages are regulated in the UK.

Page last updated: Thursday 13 August 2026