Recent research from Perenna shows that six in 10 (60%) over-55s report a lack of choice in mortgage products tailored to them and over a third (36%) believe their mortgage is restrictive because of their age. This age discrimination is systemic, and older borrowers often find themselves with limited mortgage options or, in some cases, limited to just equity release.

While these products can provide access to cash for home improvements or once-in-a-lifetime experiences, they may not be the most suitable product at their young age. 60 is the new 40. 

 

Opportunities in the later life mortgage sector 

However, this burgeoning market segment presents a significant opportunity for the mortgage industry that brokers cannot ignore. Like most developed countries, the UK has experienced an increase in life expectancy rates in recent times – on average, now almost half of your adult life is spent from 50 onwards.

Some 12 months on from the implementation of Consumer Duty, it has never been more important that products exist that are suitable to people’s evolving needs as they live longer.

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Yet traditional banks continue to view over-50s as high risk. This is more a symptom of the inflexibility of legacy mortgage products, which do not always align with the financial profiles of older borrowers. 

Pensioners, particularly recipients of defined benefit schemes, are among the most reliable borrowers. A study by the Resolution Foundation found the average pensioner was £1,000 per year better off in 2024-25 than a decade ago. Their financial stability and predictable income streams allow them to confidently fix mortgage rates for extended periods, significantly reducing the risk of default.

 

Evolving needs as people age 

Life circumstances can change, and lenders need to accept that, from pensioners eager to downsize to an older borrower looking to remain in their home following a separation or family members sadly passing. The existing lenders in the later life market recognise the necessity of personalised financial solutions, coming up with innovative products like retirement interest-only (RIO) solutions or standard capital repayment mortgages combined with no maximum age limits.

In addition, the average age of first-time buyers in the UK has been on an upward trajectory in recent years due to the cost of borrowing and wider cost-of-living pressures. Data from the Financial Conduct Authority (FCA) shows that the number of first-time buyers over 50 has increased by 30% in the past five years, a clear sign that demand is ripe among this demographic.

Brokers act as essential points of contact for borrowers in search of tailored advice and have the opportunity to distinguish themselves by providing products and services that are not only inclusive and supportive but also innovative. This approach demonstrates both empathy and builds trust and loyalty among clients.

Perenna operates on the principle that age is merely a number and those who can afford a home should have access to a broad range of fair, flexible, and fixed-rate mortgages, which is why all of our products have no maximum age. By recognising and addressing the unique needs of the over-50s and pensioners, mortgage brokers can enhance their service offerings.

This broadens their client base, helps to build long-term relationships with those currently underserved by traditional banks and also positions them as pioneers in an emerging industry.