More people are buying their first home in their mid-30s ¹ ². The old idea of retiring in your 50s with a final salary pension is becoming less common. 

As borrowers get older, their financial needs change. Many are now looking for mortgage options later in life, to boost retirement income, support family, or fund lifestyle changes. That is why lenders and advisers need to adapt. 

Understanding the needs of later life clients 

Older borrowers usually have different needs than younger ones. Here are a few important points to consider: 

• Income: Many rely on pensions, savings, or investments instead of a job. 

• Affordability: Monthly payments must be easy to manage. 

• Inheritance: Clients may want to unlock money from their home but still leave something for their family. 

• Health: Plans should allow for possible care needs and longer lifespans. 

• Attitude to risk: Old borrowers may be less willing to take interest rate risk and will benefit from longer term fixed rates 

Tailored mortgage solutions 

Perenna offers brokers a range of products to suit older clients: 

1. Retirement Interest-Only (RIO) Mortgages

• Clients pay only the interest, so monthly costs stay low. 

• The loan is paid back when the home is sold, the client moves into care or passes away. 

• No repayment vehicle is needed. 

2. Standard Residential Mortgages with Longer Terms

• Clients can get a full repayment mortgage well into later life. 

• Interest only mortgages are available where the borrower has a repayment vehicle. 

• There is no maximum age at application or at the end of the term, and we offer terms up to 40 years. 

• The mortgage can stay with the home and pass to beneficiaries. 

3. Downsizing and Moving Home

• Selling a bigger property and moving to a smaller one can free up money. 

• It also lowers living costs and helps clients stay financially flexible. 

Key considerations for brokers 

When advising later life clients, keep these points in mind: 

• Stay compliant: Make sure your advice follows FCA guidelines. 

• Check affordability: A full income and expenditure check helps find the right solution. 

• Educate your clients: Clearly explain how each product works, including any risks. 

• Get families involved: Including heirs in the conversation helps avoid confusion later. 

Final thoughts 

Perenna takes a modern approach to later life lending. Our products offer stability and flexibility, helping older clients make the most of their home’s value. 

Many are equity-rich but cash-poor. With the right support, they can enjoy life now — while they are still healthy and active, and still plan for the future. 

Written by Business Development Manager, Janet Frame. 

Correct at time of publishing.   

Footnote 

¹ Halifax First-Time Buyer Review 2024 – Average age of FTBs is now 33, the highest in two decades.
² TSB via This Is Money, April 2025 – Average first-time buyer now over 30 in all but one UK region. 

In the past, most people aimed to pay off their mortgage by the time they retired, relying on their pension to cover living costs. If they needed extra money, options like equity release were available. 

But that is no longer the case for many. 

Today, many people retire still owing a large amount on their mortgage. But when they look for support, some high street banks often say no. 

Lenders have not kept up with people living and working for longer. 

Why the change? 

Here is what is driving the shift: 

• Changing mindset: Easy access to low-interest rates has made debt more common. Many see it as a normal part of life. 

• Higher living costs: Inflation and rising costs have led to more borrowing for things like cars and holidays. 

• Regular remortgaging: Many people remortgage to raise capital, adding to their debt instead of reducing it. 

The key point: many people still need mortgage options later in life – and do not know they exist. 

How Perenna can help 

At Perenna, we are making it easier to get a mortgage in later life. Our long-term fixed-rate mortgages offer: 

• No maximum age at application or at the end of the term 

• Retirement income affordability, allowing pension income to be used 
• Flexible repayment options, including repayment, interest-only, or retirement interest-only

For example, Linda and Jack each receive a state pension of around £11,500 a year. Based on their income and no other debts, they could borrow over £100,000 with us at an interest rate of 6.06%.* This could be taken on either a repayment or interest-only basis. 

Stability in uncertain times 

With older borrowers often more vulnerable to interest rate change shocks, our long-term fixed rate mortgages provide the peace of mind and predictability that is crucial later in life. No unexpected rises. No short-term fixes. Just stability – for the full term of the mortgage. 

The bottom line 

Retirement is different today. Whether you are still working or relying on pension income, flexible mortgage options can make a big difference. 

If you have clients in or nearing retirement, contact us today to learn how we can help them maintain financial flexibility. 

Correct at time of publishing.  

Footer 

*Figures correct as of April 2025 and based on typical household expenditure. Actual lending will depend on a full affordability assessment and lending criteria. 

In 2024 alone, over 200,000 Skilled Worker Visas ¹ were issued, and many of these went to healthcare professionals like doctors and nurses. As these professionals look to settle in the UK, more are seeking to buy homes here. 

Getting a mortgage as a Skilled Worker or Global Talent Visa holder can be tough. Many lenders require larger deposits or set strict income limits. 

At Perenna, we are proud to offer a tailored solution for these clients. Our lending of up to 95% LTV and 6x income (LTI), subject to criteria offers a flexible and accessible option for Skilled Workers who want to purchase a home and start building their future in the UK. 

Why Perenna’s skilled worker mortgage could be right for your clients

We know your clients do not need more hurdles when buying a home. That is why our mortgage options make homeownership easier for Skilled Workers. Here is what makes our offering stand out: 

• 95% Loan-to-Value (LTV): This means your clients can get on the property ladder with a smaller deposit. 

• Up to 6x Loan-to-Income (LTI) subject to criteria: Lending is based on income, making it easier for Skilled Workers to borrow what they need. 

Eligibility criteria 

Here is a simple breakdown of the requirements . 

• £50,000 minimum annual income for the Skilled Worker Visa holder. 

• At least 18 months of UK residency, with at least 12 months remaining on the visa at the time of application. 

• Joint applications accepted: If applying with a spouse, the Skilled Worker must meet the £50,000 minimum income requirement, and the spouse’s income can be added to the affordability assessment. 

Our policy helps Skilled Workers buy their first home with a low deposit, so they can borrow what they need more easily. 

Flexible repayment options

With our long-term fixed-rate mortgages, you can offer your clients the peace of mind that their payments will stay the same.

We also offer a 5-year Early Repayment Charge (ERC) that reduces each year, so if circumstances change, your clients have flexibility. After five years, they can redeem the loan without penalties. 

Let’s talk! 

Do you have clients who are Skilled Workers or Global Talent Visa holders? We would love to help. Perenna’s solutions are flexible, stable, and affordable, making it easier for them to take their next step in homeownership. 

We would love to hear from you! Feel free to reach out to our friendly team to discuss any cases or questions you may have. Contact us today! 

Or why not try out our affordability calculator to see whether Perenna is a perfect match for your clients. 

Written by Perenna’s Intermediary Support Manager, Graham Laverty.

Correct at time of publishing.  

¹ Why do people come to the UK? Work – GOV.UK 

Mortgages in later life are changing, and brokers need to stay ahead. 

In our first webinar of the year, Tom Blackler and Deb Reeves shared key insights on lending into retirement. They showed brokers how to offer flexible mortgage solutions that better support their clients’ needs. 

What makes Perenna different? 

At Perenna, age is but a number. That is why we have removed age limits on some of our products, both at application and at the end of the mortgage term. 

Our goal? To help homeowners make the most of their retirement, with a mortgage that truly works for them. 

Key takeaways from the webinar 

Business Development Manager, Tom, highlighted key Perenna policies that are particularly beneficial for clients over 55: 

• Fixed for term mortgages – All Perenna mortgage products come with a fixed rate for the entire term. This means clients can count on a stable interest rate. And more importantly, a predictable monthly payment throughout the mortgage term. 

• Flexibility – While our mortgages are fixed for the full term, they come with a 5-year Early Repayment Charge. This means that after five years, clients can pay off their mortgage, remortgage with another lender, or stay on the same rate. If Perenna offers a lower rate, they can choose to switch through a product transfer. 

• Income multiples – Unlike other lenders, we base stress tests on the customer’s pay rate instead of the Standard Variable Rate (SVR). This allows us to lend up to 6 times income – up to 95% LTV, or 70% LTV for those 65+ at application and 85+ at term end. 

National Account Manager, Deb, explained how Perenna considers retirement income for customers: 

• Pensions & annuities – State, workplace, and private pensions are all accepted. 

• Drawdowns & SIPPs –We can use 4% of the total pension value as annual income, provided the client is not withdrawing more than that. 

• Rental income – This is considered if it is well-documented, sustainable, and factors in property costs. 

• Earned income – This can be used up to age 70. For clients who are more than 10 years from retirement and paying into a pension, earned income can still be considered, so long as less than half of the mortgage term remains before their retirement age (or age 70). 

Deb shared an example of a 59-year-old client, to show how mortgage terms are based on the expected retirement age. There may be some lenders that assume retirement at 70, but Perenna offers more choices, for self-employed and for office workers. 

For borrowers lending into retirement – either within 10 years of retirement or where at least half of the loan term falls during retirement – the Loan-to-Value (LTV) is typically capped at 70% to support long-term affordability. 

January’s webinar also covered Perenna’s Interest-Only and Retirement Interest-Only (RIO) mortgages – both built for long-term stability. 

Interest-Only mortgage criteria 

• Up to 25-year term 

• Maximum 75% LTV 

• No maximum age limit, as long as there is an alternative repayment plan. 

Retirement Interest-Only (RIO) mortgage criteria 

• Minimum age 50 

• Maximum 60% LTV 

• Affordability based on interest-only payments 

• Repayment triggered by a life event (e.g., death or long-term care) 

• Independent legal advice required for applicants aged 80+ at application 

Not sure which is best for your client? You can compare our product offering here. 

Q&A highlights  

Brokers raised key questions on affordability, joint applications, and rental income. A key topic was how we assess joint applications when one borrower is retired, and the other is still working. In these cases, we consider both incomes and overall affordability.  

Perenna’s Lending into Retirement policy gives brokers more options to help clients get long-term mortgage solutions. 

Do you want to learn more? Take a look at our intermediary website for full criteria details. 

Join our next webinar! 

Do not forget to join our next webinar on Thursday, 13th February. We will be talking about Perenna’s unique selling points. Register here and keep an eye on our socials for details! 

Correct at time of publishing. 

Often Equity Release is provided as the only solution for older borrowers. But today, I want to explore the full range of options available. 

My drive and passion around this subject are all about choice and advice. The freedom to make choices and access professional and considered advice. 

From a personal perspective, I look at my own parents and want them to spend what is theirs, enjoy retirement to the full and be comfortable in the choices they make! 

As for the ‘alternative,’ this is not just about an ‘alternative’ for now, but about a well-thought-out plan. It might mean that Equity Release is the ‘right fit’ or the best solution in several years’ time, but for today, it is about exploring all options. 

As a broker, I encourage you to consider what later life lending means to you. Do you see yourself as someone who handles it? Many brokers tell me they do not specialise in later life lending, but why not? If you have advised a client to take out a mortgage beyond retirement age, then in my view, you do – and you should not shy away from it. 

Later life lending could be a great option for many people in retirement. The freedom that the right type of borrowing can bring in later years may be life-changing for those who embrace it. Life is for living, and I encourage you to help more clients do just that! 

While equity release is absolutely one option, I want to focus on those customers who can afford monthly payments now, especially with long-term fixed rates. 

Long-term fixed rates = stability for older borrowers 

When it comes to securing a mortgage or a loan in later life, one of the big concerns for borrowers is interest rate volatility. Rising rates can lead to higher monthly payments, which is a concern for those on fixed incomes or pensions.  

Protect your clients from rate changes and give them peace of mind.  

With a Perenna mortgage, there are no early repayment charges after five years. This means your clients can explore options like Equity Release or others, without worrying about penalties. 

Let’s look at those ‘alternatives’.  

A traditional ‘term’ mortgage

Perenna has a genuine no maximum age policy. If a traditional mortgage is affordable, it may be the right option for some clients. With a long-term fixed rate mortgage, clients benefit from payment security while repaying capital, should that be their preference. This ties back to the point of financial freedom and choice in the here and now. The mortgage could be inherited along with the property when the time comes. The intergenerational aspect that these supports should be explored – after all, family homes are more than just bricks and mortar! Of course, the mortgage can still be paid off with the proceeds of sale if that is the right option for the family or those inheriting the property. 

Retirement interest only (RIO)

This option suits those who want to keep payments lower but prefer to pay monthly interest rather than allowing it to roll up. This helps preserve the home’s equity. At Perenna, we’ve found that brokers have welcomed the option to use ‘downsizing’ in the event of the first death, which avoids the death stress test applied by some lenders (subject to minimum equity and the ability to downsize). RIO mortgages open that halfway house between a traditional mortgage and Equity Release and should not be discounted as an option. It could great solution for the right clients. 

Please do not assume that older borrowers can’t be helped. In some cases, the days of paying off a mortgage at retirement with a pension lump sum are not feasible. More positively, the days of limited choices – where clients were forced to downsize or rent due to a lack of mortgage options – are gone! 

Whether clients are coming to the end of an interest-only mortgage term without a repayment plan, need funds for home improvements, want to help family members onto the property ladder, secure the dream holiday, or are planning long-term estate solutions, there is now a range of options. These choices support financial freedom at any age. 

This is sensible, responsible lending, supporting sensible, responsible mortgage advice. 

So next time you have a client that is looking at their options in later-life. Ask yourself, whether you’ve presented all of the options.  

See how Perenna can help today.  

Use Perenna’s affordability calculator 

Written by Perenna’s National Account Manager, Deborah Reeves 

Correct at time of publishing. 

As a broker, you may have seen more homeowners over 65 seeking mortgage advice. 

Did you know that 2 in 5¹ new mortgages now stretch beyond pension age? Understanding this growing group and their needs is key to helping your clients.

Over 50s² in the UK hold 78% of privately held housing wealth. 

Many in this age group are looking for ways for their equity wealth to help them to live their life in retirement, or to support their family to buy homes of their own. Changes in pensions and longer life expectancy mean people now have less money to spend compared to previous generations. 

Providing options here is crucial, but this group may find themselves frozen out by many lenders. Age limits at application or term end can cap loan sizes and shorten repayment terms, making payments harder to afford. This pushes people towards expensive specialist products, which can harm vulnerable customers if they don’t get the right advice. 

Perenna are proud to offer solutions to this group. We don’t apply maximum age limits, meaning we can offer longer mortgage terms. As long as we are using sustainable income into retirement, we can offer a long-term repayment mortgage on our standard product range and criteria. Our long– term fixed rates could be ideal for borrowers who are retired, as they remove the need to refinance every few years.  

Knowing their monthly payment will never change can give clients peace of mind. Importantly though our products come with a reducing 5-year ERC, to give flexibility should they ever need to change their deal. 

Our Retirement Interest Only (RIO) product could be great for those who prefer interest only. While some brokers might not deal with these cases often, our support teams are here to explain the options available for your clients and how we can help. 

At Perenna, we believe anyone who can afford a home should have the chance to own one – no matter their age. 

Do you talk to clients in or approaching retirement? Want to offer tailored mortgage solutions for those in later-life clients? Contact our support team or explore Perenna’s flexible products today. 

Written by Perenna’s Intermediary Support Manager, Graham Laverty.  

Correct at time of publishing. 

 ¹  Two in five mortgages set to run into retirement: LCP   – Mortgage Strategy 

 ² Savills UK, Housing wealth held by over 65s hits record high of over £2.6 trillion.

We really appreciate it when our broker partners take the time to share their experiences with us.  

Your views help us to know where we’re doing things right and help us to identify where we could improve.  

Celebrate with us as we share the positive experiences you’ve had with Perenna. Our #FridayFeedback series on LinkedIn showcases the feedback we’ve received. Here’s a snapshot of what our broker partners have said: 

• David at L&C liked our clear process and great service. He was impressed by how we helped a distressed client when no one else could, noting that our quick and personal support made a big difference. Read more. 

• Rob at Sunland appreciated being listed in our ‘Find a Broker’ directory, which brought him a new referral. He mentioned that this feature helps small businesses get noticed and find new opportunities. Read more. 

• Richard at Hawkstone described the experience of submitting his first case with Perenna as the best he’s had in 20 years. He praised our team, policies, and quick service, noting that the whole process was outstanding. Read more. 

• Robert at New Homes Mortgage Helpline appreciated our Deposit Unlock new build proposition, which allowed first-time buyers to secure a new home with just a 2.5% deposit. He valued the comprehensive support we provided throughout the application process. Read more. 

• Corey at L&C was impressed with our modern, user-friendly system. He also praised our team’s prompt and helpful support, which greatly enhanced his experience. Read more. 

• Aaron at Mortgage Advice Hub praised our team for being efficient and responsive. He found our platform to be the fastest and easiest to use, which made for a great experience. Read more. 

• Dan at UK Moneyman enjoyed working with Perenna and valued our top-notch support, fast processing times, and creative solutions for older borrowers. Read more. 

• Hubert at Cooper Associates was impressed by our service and quick underwriting, highlighting our strong commitment to supporting brokers. Read more. 

We appreciate the positive feedback from our broker partners. Your insights help us grow and get better.

Stay connected with us on LinkedIn for more stories from our #FridayFeedback series. We’d also love to hear your experiences—email us at broker@perenna.com.

Correct at time of publishing.

Retirees deserve the freedom to live the lives they’ve worked hard for. That’s why we call it The Mortgage Revolution! 

Freedom and choice in retirement 

With sensible advice, a mortgage in retirement can enhance, not hinder, the golden years. It’s about what suits their needs. Paying off a mortgage by retirement has been the norm and may be the best solution for a lot of clients.  But what if a mortgage could provide the freedom other clients need in retirement? 

Retirement should be a time for relaxing and living away from the pressures of work. Financial worries, especially around your home, can ruin any planned relaxation. And that’s why, at Perenna, we believe in providing options.  

The need for responsible later life lending 

Headlines from research conducted on behalf of Perenna highlight the need for tailored mortgage products for those over 55*: 

• 60% of over 55s report a lack of suitable mortgage options. 
• 36% find their mortgage restrictive due to age. 
• 64% worry about financial strain from rising payments. 

Older borrowers are often excluded from standard mortgage products due to maximum age limits or the exclusion of pension income.  

*Source – 1,003 survey respondents conducted by Censuswide in January 2024. All respondents were homeowners aged 55+.   

How could a Perenna mortgage help?  

Perenna aims to provide an alternative option.  We’ve pulled together some scenarios below to show how a Perenna mortgage could help your clients in later life.  

Consider these common situations: 

Lifelong homeowners
They’ve lived in their home for years, brought up children there, and now their grandchildren have their own rooms. The memories in these four walls are priceless. However, they face high SVR rates with no repayment plan and are being pushed to repay by their lender. 

Post-separation
After a separation later in life, as a single applicant, they want to release some equity from the property and stay in the location they love, but end-of-term age limits are a real barrier. 

Newly retired
With no mortgage and the world at their feet, they want to live life, travel, make home improvements, or help their children onto the property ladder, but savings are low. They need that lump sum without being ready to downsize just yet. 

Dream retirement home
That perfect new build home near the family is on the market, but the area is more expensive than where they live now. Selling their home doesn’t quite give them enough to make the move, so they want to explore finance options as this opportunity might not come up again. 

Perenna’s long-term fixed-rate lending could be a great option for all the above situations. 

Perenna’s solution 

For some of your clients, lending into retirement is not required, and aiming to pay off their mortgage before they leave employment is the best solution for them.  However, for others, lending into retirement can be a good solution to assist individuals in securing a home or maintaining their current residence, provided it is done responsibly and appropriately. 

We know that a short-term fixed rate can leave the borrower vulnerable to payment shocks, especially on a fixed pension income. With Perenna, the risk of payments becoming unaffordable is removed, and payment certainty is gained.  

We don’t want later life borrowers to have to make choices about holidays they can’t go on or hobbies they have to give up when their rate expires. Instead, they can have the best of both worlds and the ability to take advantage if rates go down. 

With a range of options, including no maximum age on a repayment mortgage or a retirement interest-only mortgage, all with only a 5-year ERC, Perenna can help put the financial freedom back in the hands of the borrower. 

So next time you have a client looking to borrow in later life, make sure you consider all of the options available, and see whether a Perenna mortgage could be the perfect match.

Correct at time of publishing.

Our recent webinar, led by Perenna’s National Account Managers Tim Sorrell and Deborah Reeves, focused on our new build mortgage range. It offered insights and tackled brokers’  queries. 

Webinar highlights

Own New: 

If your client is thinking about a new build home, Own New could be a perfect fit. 

Own New connects home builders and lenders to help more people with buying a new build home. 

The scheme enables lower-rate mortgages for new homes. It is funded by housebuilders, who pay a small fee upon the sale’s completion. There is no cost to the buyer. This means your client can have a normal mortgage and own 100% of their home.

Deposit Unlock: 

One of the main talking points  was the Deposit Unlock scheme. This allows clients to buy new homes with just a 5% deposit. 

If your client dreams of owning a new home but finds it hard to save, the Deposit Unlock scheme could help. 

The scheme allows your client to have a normal mortgage and own 100% of their home. And they’d only need a 5% deposit. 

Tim and Deborah highlighted that Deposit Unlock is specifically for new build houses. There is also a maximum loan amount of £750,000. Understanding different construction types is crucial, especially for non-standard properties. 

Insights on affordability assessment: 

In the webinar, attendees learned about Perenna’s affordability assessment. We look at debt-to-income without a fixed ratio, while also considering debt obligations for responsible lending. 

Q&A session: 

In the webinar, we answered questions about topics such as offer extensions and non-standard properties. Tim and Deborah gave detailed responses, explaining Perenna’s new build options. 

Next webinar: 

Save the date for May 16th! We will be hosting our next Perenna Live webinar.  

Have ideas or thoughts for future sessions? Email us at broker@perenna.com. We’d love to hear from you! 

Interested in how Perenna can help you and your clients? Reach out to us or visit our website.

Correct at time of publishing.

Our first Perenna Live webinar, held on Wednesday 6th March, brought together brokers for an engaging exploration of Perenna’s latest offerings and broker support. 

Arjan Verbeek kicked off the webinar with an insightful introduction, emphasising Perenna’s mission to expand the mortgage market by offering innovative solutions. 

He discussed how Perenna aims to help individuals who face challenges in securing mortgages, including those with affordability constraints and older individuals looking to borrow into retirement. 

Colin Bell then delved into Perenna’s product offerings, highlighting the features that distinguish Perenna from traditional lenders. He elaborated on Perenna’s long-term fixed-rate mortgages, flexible terms, and innovative affordability assessment approach which help to maximise your client’s borrowing power.   

To see how Perenna can help with affordability, why not use our affordability calculator today? 

Colin also emphasised Perenna’s commitment to supporting brokers, describing the procuration fee structure which provides a fee at completion and trail commission when you review your customers’ needs.  

During the webinar, a prevalent question centred on assessing clients transitioning from working life to retirement. Arjan and Colin emphasised Perenna’s ‘age is just a number’; approach, which means we will not apply maximum age limits, ever. They also highlighted Perenna’s pragmatic approach to income assessment and enhanced affordability for borrowers nearing retirement. 

Another pertinent query addressed whether it’s suitable to commit customers to a 40-year term. Arjan and Colin clarified Perenna’s stance, emphasising flexibility over lengthy commitments. They clarified how Perenna’s funding model facilitates short ERCs and flexible fixed-rate terms, ensuring customers have tailored options without enduring prolonged obligations.  

We extend our appreciation to the entire team for orchestrating this successful webinar. The thought-provoking discussions and insightful queries underscore Perenna’s dedication to empowering brokers and customers alike. We eagerly anticipate hosting more of these  webinars in the future. Watch this space…  

In the meantime, if you are interested in exploring how Perenna can help enhance your clients’ mortgage experiences, check out our website or get in touch with our team who will be happy to chat. You’ll find our contact details here:  Contact Us | Perenna Brokers. 

We value your feedback! Share your thoughts on the webinar experience and suggest topics for future sessions by emailing broker@perenna.com

Correct at time of publishing.