Downsizing Bridging Rates for Over-55s 2026 — Updated October 2026
- Regulated bridging from
- 0.65%/monthRegulated bridging from
- Usual maximum term
- 12 monthsUsual maximum term
- Rolled interest on £450,000 over 6 months at 0.70%
- £19,234Rolled interest on £450,000 over 6 months at 0.70%
- How the bridge is repaid
- Sale of your homeHow the bridge is repaid
Downsizers often have plenty of equity but no mortgage capacity, so a regulated bridge lets you buy first and sell after. In October 2026 regulated bridging starts from about 0.65% a month, repaid from the sale of your current home.
What a downsizing bridging loan costs: worked example
- Interest
- £19,234
- Arrangement fee (2%)
- £9,000
- Interest and arrangement fee
- £28,234
£450,000 for 6 months at 0.70% a month, interest rolled
Repaid from the sale proceeds.
A free, no-obligation later life lending review with a qualified adviser
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
- Enquiry type
- Later Life Lending
- About
- Downsizing Bridging Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
Lifetime mortgage rates are fixed for life and are priced from long-dated gilt yields, which rose in September alongside other market rates. Bank Rate is 3.75% after the 17 September hold, with the next decision on 5 November.
Retirement interest-only and retirement mortgages follow the wider mortgage market, where fixed rates rose in September. Rates are indicative and depend on age, property value and the amount released.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
Do I need income to qualify?
Affordability focuses on the sale as the exit; the lender checks you can cover costs if the sale is delayed.
Can I bridge against both homes?
Yes — often at a lower rate.
How long can a downsizing bridge last?
Usually up to 12 months, which covers most sales.
Is downsizing bridging regulated?
Yes, when secured on your home, so the lender checks affordability and the exit.
Can I release extra cash at the same time?
Yes, within the lender's LTV limits, with the bridge repaid from the sale.
What is the minimum age?
55 for lifetime mortgages; many RIO and retirement mortgage lenders start at 50–55.
What happens when I die or move into care?
The loan is repaid from the sale of the home, usually after the last borrower dies or moves into long-term care.
Will it affect my benefits?
Releasing cash can affect means-tested benefits; your adviser will check this before you proceed.
Can my family still inherit?
Yes, what remains after the loan is repaid, and some plans let you protect a percentage of the property's value.
Do I need advice?
Yes. Equity release must be arranged through a qualified adviser, and we recommend involving your family.
Where this applies
Talk to us about
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your home.
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Independent whole-of-market advice · FCA No. 814533