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The Client

The client was an ex-army veteran who was semi-retired but still working part time for a large supermarket chain. Their spouse was a former housewife in the process of receiving a pension. After an initial conversation and affordability calculation, the clients were satisfied they could get a new mortgage despite their ages, and began their property search with enthusiasm.

The Scenario

They wanted to sell their existing home, which they owned outright with no mortgage, to move to a more expensive property. Because there was nothing to complete alongside, the property needed to go on the market first. This was back in February 2022, when the market favoured sellers, and they found a buyer within a few short weeks.

“The whole process was daunting, and we did not know if we could even get a mortgage at our age.”

After careful consideration, they decided to move to Wales to be closer to the coast. An offer was accepted on a new property, and they were ready to proceed with the mortgage application.

The Solution

We initially looked at a retirement interest-only mortgage, but most lenders would not take the clients’ earned income into account on that product, and the application would have failed affordability on retirement income alone. The clients also preferred a repayment mortgage for peace of mind.

Most high street and specialist lenders cap the maximum age at the end of the mortgage term when using employed income, typically around 70. For this client, that would have meant a shorter term and monthly payments higher than they wanted to budget for. We approached a senior underwriter at a high street lender who agreed to accept the client’s earned income up to age 75, extending the affordable term and allowing the remainder to be supported by their joint retirement income alone.

The Outcome

This approach meant the clients could secure a longer mortgage term for affordability while sticking to the repayment structure they preferred, rather than being forced into interest-only or a shorter, more expensive term.

Frequently Asked Questions

Can I get a mortgage if I am semi-retired or near retirement age?

Yes, though your options depend on how your lender treats your income.
Many mainstream lenders cap the age at which they will use employed income, but specialist underwriting can often extend this significantly on the right case.

What is a retirement interest-only mortgage and is it right for me?

A retirement interest-only mortgage is assessed on your retirement income alone, which does not suit everyone.
If your earned income is still significant, a standard repayment mortgage using that income may work out more affordable and better suited to your preferences.

What is the maximum age lenders will accept for a mortgage term?

Most high street lenders cap employed income use at around age 70, but this varies.
Specialist underwriters and certain lenders will consider employed income up to a later age on a case-by-case basis, which can make a meaningful difference to the term and monthly payment.

Can earned income be used for a mortgage past age 70?

Yes, with the right lender.
While many lenders stop counting employed income at 70, some will extend this to 75 or beyond where the case is presented properly, which can significantly improve affordability.

If you have any questions relating to a semi-retired residential or buy-to-let mortgage and would like a free quotation or advice, contact us today to speak directly with one of our Mortgage Advisors.

UK Mortgage Broker is a whole-of-market broker directly authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.

Call: +44 1628 969 500
Email: info@uk-mortgagebroker.co.uk

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