More people are borrowing after 55 – but later-life mortgages are not all the same

New figures from UK Finance show that 37,300 loans were advanced to borrowers aged 55 and over during April to June 2026. That was 13.4% more than in the same period last year, while the total amount lent rose by 20.5% to £6.2 billion.

Those are significant increases, but they need some context. UK Finance says the annual comparison was inflated because lending dipped in spring 2025, after some buyers rushed to complete before stamp duty changes took effect. So this is not evidence that every older homeowner is suddenly releasing equity, or that a later-life mortgage is becoming the obvious answer for everyone.

What it does show is that reaching your 50s or 60s no longer automatically marks the end of the mortgage conversation.

Why are more people borrowing later?

There is no single reason.

Some homeowners still have an ordinary repayment mortgage running into retirement. First-time buyers are purchasing later and taking longer terms, while people also work beyond traditional retirement ages.

Others may want to remortgage, move home, clear an existing interest-only balance, help family, fund improvements or release money from their property. Landlords are part of the picture too: UK Finance says lending to over-55s represented 20.6% of all new buy-to-let loans in the quarter.

The important point is that “later-life lending” is an umbrella term. It includes very different products, with different costs, affordability tests and consequences.

A standard mortgage may still be possible

Being over 55 does not automatically mean you need equity release.

Depending on your income, retirement plans, mortgage term and the lender’s rules, a standard repayment or interest-only mortgage may still be available. Lenders will want to understand whether the payments remain affordable, including after any expected retirement date.

That can mean looking at pensions, employment income and other reliable income rather than age alone. Criteria vary widely, which is why one lender declining an application does not necessarily settle the question.

Retirement interest-only mortgages

A retirement interest-only mortgage, usually shortened to RIO, lets you pay the interest each month. The capital is normally repaid when the property is sold, when you move into long-term care or when you die.

Because the interest is being paid, the balance does not normally grow in the same way as it can with a roll-up lifetime mortgage. However, you must be able to demonstrate that the monthly payments are affordable, both now and in retirement. Your home could be at risk if you do not keep up those payments.

UK Finance recorded 323 new RIO mortgages in the second quarter of 2026, up 5.9% on a year earlier. That remains a small part of the wider market, but it can be a useful option in the right circumstances.

Lifetime mortgages

A lifetime mortgage is a form of equity release secured against your home. You continue to own and live in the property, and the loan is usually repaid when the home is sold after the last borrower dies or moves permanently into long-term care.

Some plans allow payments, but with a roll-up lifetime mortgage you can choose not to make monthly payments. Instead, interest is added to the loan. Future interest is then charged on the increasing balance, so the debt can grow substantially over time and reduce the value left in your estate.

There were 5,730 new lifetime mortgages in the quarter. That was 8% higher than in the previous quarter, but 1.7% lower than a year earlier. Again, the wider increase in borrowing by over-55s should not be mistaken for a simple surge in equity release.

What this means for you

If your mortgage is due to finish around retirement, or you are considering borrowing against your home, do not wait until the final few weeks to understand your choices.

Start with what you need the money to do, how long you expect to borrow for, what income you will have and how important it is to preserve equity in the property. Also consider the alternatives. These could include using savings, downsizing, changing your plans, asking your existing lender about an extension, or borrowing less.

The monthly payment is only one part of the decision. You also need to understand the total long-term cost, fees, early repayment charges, what happens if you want to move, and the possible effect on inheritance or means-tested benefits.

The Financial Conduct Authority is currently studying the lifetime and RIO mortgage market, including how customers understand their options and receive advice. That reinforces the central point: later-life borrowing can provide useful flexibility, but the products are not interchangeable and the decision needs proper advice.

Three practical takeaways

1. Do not assume age alone rules you out of a standard mortgage; lender criteria and acceptable retirement income vary.

2. Compare the long-term effect, not just the monthly payment. Paying interest, rolling it up and repaying capital all lead to very different outcomes.

3. Begin the conversation early, particularly if an existing mortgage term is ending or your income is about to change.

If you want to understand which mortgage routes may be available as you approach or enter retirement, My Simple Mortgage can help you review the options clearly. We will explain the differences, the likely costs and the questions you need to consider before you make a decision.

This article is for general information only and is not personal mortgage, equity-release, legal or financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage.