How Later Life Lending is Evolving: What Mortgage Professionals Should Know

However, strict age limits and affordability rules from mainstream lenders create challenges for brokers. Understanding these shifts and working with specialist lenders is key to helping clients secure the right solution.

The challenges brokers face in later life lending

Later life lending has become an essential part of the mortgage market, but brokers often face barriers when placing cases for older clients. 

Many high-street lenders restrict mortgages for seniors, capping borrowing at age 75 or even earlier, leaving brokers with limited options. One of the biggest challenges is the lack of lenders willing to offer flexible solutions, making it difficult for brokers to place cases successfully.

Affordability assessments add further difficulties, as pension, investment or rental income often falls outside of mainstream lending criteria. By choosing lenders that offer manual underwriting and specialist later life products, brokers can better serve their older borrowers and find solutions that mainstream lenders often overlook.

Why more clients are borrowing in retirement?

The demand for retirement mortgages is rising as more clients seek financial flexibility beyond traditional retirement ages. With people living longer, many are looking for ways to extend their borrowing to support their evolving financial needs and require solutions that go beyond the rigid age limits imposed by larger lenders.

Changing retirement patterns also play a role, with more people working beyond 65 and maintaining an income to support mortgage repayments. Homeownership remains a key asset, and many want to make the most of their property wealth while keeping financial commitments manageable. 

For brokers, this presents an opportunity to expand their expertise and work with lenders who offer flexible later life lending solutions that consider a wider range of income sources and long-term affordability.

Later life is one of our main lending areas at Family Building Society and one in which we have many years of experience. Many of the clients that come to us are in their mid-to-late 60s or early 70s who have reached the end of their term with their high street lender who will not extend their term into retirement. 

Often their income has reduced, possibly due to retirement, bereavement or a ‘grey divorce’. There are also older borrowers who are unencumbered but looking to gift money to family members, invest in a second home, or do some home improvements in their current property.

Unlike larger lenders that impose strict age limits, Family Building Society provides bespoke mortgage solutions for borrowers over 75.

While many mainstream banks cap lending at this age, Family Building Society takes a more flexible approach, considering applications well beyond these limits. Our lending criteria is designed to accommodate the unique financial circumstances of older borrowers, making us an attractive option for brokers struggling to place cases in this market.

A key area that makes us stand out is our use of manual underwriting, which means that each application is assessed individually rather than relying on automated systems. 

We don’t credit score but instead offer tailored credit checks which allow us to consider complicated income streams. And with our generous mortgage terms, we can offer standard mortgages to those in later life; up to age 95 at end of term for an Owner Occupier Repayment mortgage, or up to age 89 at application for an Owner Occupier Interest-Only or a Buy to Let mortgage. 

By offering solutions that go beyond the restrictions of high-street lenders, Family Building Society helps brokers find the right lending options for older clients who may otherwise struggle to secure a mortgage.

The later life lending market is evolving rapidly, and more lenders are expected to adapt their criteria to meet the growing demand. As more clients look to borrow in retirement, brokers who stay ahead of these changes will be in the best position to serve their clients effectively. 

With property wealth playing an increasingly important role in financial planning, later life lending will continue to be a key area of growth for mortgage professionals.

Specialising in retirement mortgages and flexible lending for older borrowers gives brokers a competitive edge. Partnering with lenders like Family Building Society, who understand the needs of these clients, ensures better outcomes. By staying informed on market trends and regulations, brokers can position themselves as trusted advisors and help more clients secure the right mortgage solutions.

In an ageing society where financial needs are becoming more diverse in retirement, later life lending is no longer a niche—it's a vital part of the mortgage landscape. Clients are increasingly seeking ways to access property wealth, maintain financial flexibility, or support family members later in life. This shift presents both a challenge and an opportunity for brokers.

Mainstream mortgage lenders continue to impose rigid rules around age and affordability, often excluding pension or investment income and capping borrowing limits too early. As a result, many older borrowers are underserved, despite being financially responsible and asset rich. Brokers who understand this gap are well-placed to offer solutions that mainstream providers can't.