More choice, fewer assumptions: the changing mortgage market for 50+ borrowers – Pagan
The mortgage market has made significant progress in the way it supports people borrowing into and through retirement.
Advisers, lenders and the Financial Conduct Authority (FCA) have all played a part. Criteria have evolved, the range of available products has widened, and specialist options have continued to develop their protections and flexibility.
The result is a broader market than existed even a few years ago.
However, there is still an opportunity to connect those options more effectively.
Too often, mortgage lending is considered as two distinct markets: mainstream lending while someone is working, followed by specialist lending once they reach a certain age or stage of life.
Real life is rarely that clear-cut.
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A client in their 50s might be employed, self-employed, drawing a pension or combining several sources of income. They could be buying their first home, remortgaging, moving, supporting their family or receiving support themselves.
They may need a mortgage for five years or another 30.
The right answer should depend on their circumstances and plans, not simply which side of an age boundary they fall.
A market that has moved forward
The market deserves credit for the progress already made.
FCA analysis published in 2023 found that the number of interest-only and part and part mortgages had halved since 2015. The regulator attributed that reduction to more borrowers moving onto repayment mortgages or repaying earlier than expected.
Its work with the industry has also helped lenders identify and support interest-only borrowers approaching maturity. The FCA says outcomes from recent maturities have been better than previously projected, with many borrowers repaying at maturity or shortly afterwards.
Mainstream lending has evolved too. More lenders now consider borrowing into retirement, pension income, longer mortgage terms and a wider variety of working patterns.
The FCA’s current Mortgage Rule Review builds on that progress. Its proposals include greater flexibility for clients with variable incomes and changes to interest-only affordability rules, while retaining appropriate protections.
This is not a market standing still. It is a market responding to how people now live, work and manage their finances.
The boundary is becoming less distinct
The need for that continued evolution is clear in the data.
The latest English Housing Survey estimates that 352,000 households in its 35-64 age cohort were recent first-time buyers in 2024-25, compared with 155,000 a decade earlier.
Almost a quarter of mortgagors within this group had a term of 30 years or more. The government report notes that many are therefore likely to continue making mortgage payments as they approach or enter retirement.
FCA data provides an even broader view. Almost 330,000 mortgages were advanced to people aged over 55 during 2025, with mainstream products accounting for the substantial majority.
That does not diminish the importance of specialist products. It shows that 50-plus borrowing is a continuum. Different options may become appropriate at different points, but age alone does not determine where a client should sit.
The missing middle
The next opportunity for the industry is to build a stronger bridge between conventional residential mortgages and specialist products.
That means looking beyond the immediate transaction and considering the client’s longer-term route through the available options.
For some clients, a specialist product will be appropriate. Others may still have sustainable earned or pension income, sufficient equity and the affordability to remain within the mainstream residential market.
Capital and interest, interest-only and part and part can each have a role, depending on the client’s plans and the strength of their repayment strategy.
This can be particularly relevant for clients approaching the end of an existing interest-only mortgage.
Most will repay through savings, investments, pensions, the sale of their property or another mortgage. However, some will need help identifying the most appropriate next step.
Early engagement matters. The FCA has previously found that interest-only borrowers who contacted their lender earlier, without a suitable repayment plan in place, had access to a wider range of affordable options than those who waited until later.
Advisers are central to that conversation. The earlier they can assess the client’s income, equity, repayment strategy and future plans, the more opportunity there is to find an appropriate route.
The objective should not be to move clients towards a particular product category. It should be to ensure they can consider the full range of suitable options before those choices begin to narrow.
Income does not suddenly become simple at 50
Working lives have changed alongside borrowing patterns.
Department for Work and Pensions (DWP) figures show that 75% of people aged 55-59 were employed in 2025. People aged 50-64 were also more likely to be self-employed than those aged 35-49.
For lenders and advisers, that means income in this market rarely fits one standard profile. A client may receive a salary, self-employed earnings, bonuses, commission, rent, investments, pension drawdown or a combination of several sources.
That complexity does not necessarily make the income less credible. It means the assessment may require more expertise.
Technology and automated processes have an important role in making mortgage applications faster and simpler. But cases involving several income sources, changing working patterns or borrowing into retirement also demonstrate the value of experienced, human-led underwriting.
A real person can examine the evidence, understand how the different parts fit together and make a decision based on the client’s complete circumstances.
More choice, with the same responsible standards
Widening the options available to 50-plus clients does not mean weakening affordability standards.
Future income must still be evidenced. Repayment strategies must be credible. Changes in employment, pension income and household expenditure all need to be considered.
The objective is not to keep every client in mainstream lending indefinitely. It is to make sure suitable clients can consider the full range of options before a route is ruled in or out.
At April Mortgages, that thinking has shaped our approach to 50-plus cases.
We can consider a broader mix of earned, pension, investment and rental income, while eligible sole applicants can have no maximum age at the end of the mortgage term.
Our products give advisers another set of options to consider and help strengthen the connection between different parts of the mortgage market.
The market has already travelled a long way. The next step is to make those links clearer and encourage conversations to begin earlier.
Turning 50 should no longer mean having fewer mortgage options. It should mean asking better questions, taking a longer-term view and choosing from a market that increasingly reflects the many different ways people now live, earn and borrow.
