Buying a House in Retirement
Buying a property in retirement is entirely possible - whether downsizing, moving closer to family, buying a more suitable ground-floor property, or relocating to a different part of the country.
About Buying a House in Retirement
Standard residential mortgages on pension income, Retirement Interest Only mortgages, and lifetime mortgages for purchase are all available. The key is matching the product to your income, age, and what you need from the new property.
The options we compare
Standard Purchase Mortgage
A standard capital-and-interest or interest-only purchase mortgage on pension income. Specialist lenders including LiveMore Capital, Hodge, and Family Building Society provide purchase mortgages to borrowers of any age - assessed on pension income affordability.
RIO for Purchase
A Retirement Interest Only mortgage for property purchase. No fixed term end - monthly interest payments from pension income, capital repaid from eventual property sale. Available from specialist lenders including LiveMore, Hodge, Legal & General, and Nationwide.
Lifetime Mortgage for Purchase
Buy a new property using equity release - available from age 55. Use proceeds from your existing property sale plus a lifetime mortgage to fund the purchase. No monthly payments. Capital and interest repaid from eventual property sale.
Using Pension Lump Sum for Deposit
The 25% tax-free lump sum from a pension can be used as the purchase deposit. All specialist later life lenders accept this as a legitimate funds source. Evidence from the pension provider confirming the planned lump sum withdrawal is required.
Downsizing with Mortgage
Selling a larger property and buying a smaller one, using a mortgage to bridge the gap between sale proceeds and purchase price. RIO or specialist mortgage on the bridging amount, with the property sale repaying or reducing the balance.
Part-and-Part Purchase
LiveMore Capital's part-and-part structure allows part capital repayment and part interest-only in the same mortgage - particularly useful for purchase where you want to pay off some capital during the term.
How We Help
Purchase requirements
We establish the new property type, location, purchase price, and any existing property sale proceeds. We then model the mortgage amount required and the most appropriate product.
Income and lender matching
Pension income, drawdown, State Pension, and rental income assessed. Lender matched to income type and purchase requirements.
Application and valuation
We manage the application alongside the property purchase. Both application and property purchase processes run simultaneously.
Completion
We coordinate completion with the conveyancer and property seller.
Speak to our later life lending specialists
Call 0204 6211776 · Whole-of-market advice across all later life products
Frequently asked questions
Can I get a mortgage to buy a house at 70?
Yes - specialist lenders including LiveMore Capital (no maximum age), Hodge Bank (to 88 at application), and Family Building Society (to 90 at application) all provide purchase mortgages at 70. Pension income, State Pension, drawdown, and annuity income are all accepted. A Retirement Interest Only mortgage for purchase is available at 70 from all of these lenders.
Can I use equity release to buy a new home?
Yes - lifetime mortgages for purchase are available from all major ERC-approved equity release lenders. You use a combination of cash (from your existing property sale or savings) and a lifetime mortgage to fund the purchase. No monthly payments required. The lifetime mortgage is repaid from the eventual sale of the new property.
Do I need a deposit to get a retirement mortgage for purchase?
Yes - most specialist later life mortgage lenders require a deposit of at least 25-40% for a purchase mortgage. This is typically met from the sale of your existing property. If using a lifetime mortgage for purchase, the deposit required is higher (typically 40-50%) because the loan-to-value is lower.
Can I buy a retirement property with just my State Pension?
State Pension alone (£11,975/year) is typically insufficient for a significant purchase mortgage. However, combined with a private pension, drawdown, or savings that cover the deposit, specialist lenders can use State Pension as part of the income picture. For those with only State Pension income, a lifetime mortgage (equity release) for purchase may be available without income requirements.
Is it better to rent in retirement than buy?
Whether to buy or rent in retirement is a personal decision that depends on financial resources, health, family circumstances, and preferences. Buying provides stability, no rental inflation risk, and a potential inheritance. Renting provides flexibility, no maintenance responsibility, and preserves capital. We advise on the mortgage options for buying - the rent vs buy decision is ultimately yours.