Case Study: Turning 60 Didn’t Mean Her Mortgage Options Had Disappeared

Many homeowners approaching retirement assume that once they reach 60, their mortgage options become very limited.

For those with an interest only mortgage nearing the end of its term, that assumption can be even stronger.

Recently, we spoke with a business owner who believed she had reached exactly that point.

Fortunately, the reality was very different.

The Situation

The client had an interest only mortgage with an outstanding balance of approximately £178,000.

Her home was worth around £700,000.

She was approaching her 60th birthday and wanted to remain in the property for at least another ten years before considering downsizing.

Having looked at her situation herself, she believed her options were likely to be:

• Take out a lifetime mortgage (equity release)
• Start repaying the capital each month
• Sell her home sooner than she wanted

She was comfortable continuing to make monthly mortgage payments and simply wanted to understand whether there was another way forward.

Looking Beyond Age

One of the biggest misconceptions surrounding later life borrowing is that lenders focus primarily on age.

In reality, age is only one part of the assessment.

When we reviewed the client’s circumstances, a different picture emerged.

She owned a successful limited company.

The business generated annual turnover of around £100,000, with profits of approximately £48,000.

She had also taken dividends of around £52,000 during the previous year.

Most importantly, she had no intention of retiring in the near future.

Her plan was to continue working for around another ten years before eventually selling one of the two properties she and her husband owned and downsizing.

Those long-term plans were just as important as her age.

Exploring the Available Options

Once we had reviewed the wider financial picture, three potential solutions emerged.

Term Interest Only Mortgage

A standard interest only mortgage with a defined end date was likely to provide the most cost effective solution.

Depending on the lender, mortgage terms extending into the client’s seventies or beyond could potentially be available, allowing her to maintain affordable monthly payments while keeping her longer-term plans intact.

Retirement Interest Only Mortgage

A Retirement Interest Only (RIO) mortgage was also a suitable option.

Unlike a standard mortgage, there is generally no fixed end date. Instead, the borrower continues making monthly interest payments, with the capital normally repaid when the property is eventually sold following death or entry into long term care.

While slightly more expensive than a standard interest only mortgage, it offered additional flexibility if needed.

Lifetime Mortgage

Lifetime mortgages remain an excellent solution for many homeowners.

However, in this case they were unnecessary.

The client still had sufficient income to support conventional mortgage borrowing, making other options more appropriate.

The Outcome

Following our initial review, it became clear that the client was likely to be able to replace her existing mortgage with a new interest only mortgage rather than moving to equity release.

Estimated monthly payments were expected to be broadly comparable with, and potentially lower than, her existing mortgage payments.

Most importantly, she was able to continue with the retirement plans she had already made rather than changing them simply because her existing mortgage was ending.

What This Case Demonstrates

One of the biggest misconceptions we encounter is that reaching a particular age automatically limits your mortgage choices.

It doesn’t.

Lenders may also consider:

• Current income
• Business profits
• Future retirement plans
• Existing assets
• Pension provision
• Overall affordability

Every lender has different criteria and every client has different objectives.

The right solution depends on understanding both.

Final Thoughts

An interest only mortgage reaching the end of its term doesn’t automatically mean equity release is the next step.

It doesn’t automatically mean selling your home either.

Sometimes the right answer is a Retirement Interest Only mortgage.

Sometimes it’s a standard interest only mortgage.

Sometimes a lifetime mortgage is exactly the right solution.

The important thing is understanding all of the available options before making decisions that could affect your home, your retirement and your wider financial plans.

Don’t assume your mortgage choices disappear simply because you’ve reached 60.

You may have more options than you think.

Information Correct at Time of Writing

September 2026

Regulatory Disclosure

Symmonds de Lacey is a trading name of Easy Street Financial Services Limited which is authorised and regulated by the Financial Conduct Authority. Easy Street Financial Services Limited is a company registered in England and Wales with company number 6430453. The registered office address is Suite 1, Wesley Chambers, Queens Road, Aldershot, Hampshire, GU11 3JD

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.

This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.