12 MORTGAGE NEWSLETTER “My client is 62, retired, and financially secure - so why is it so difficult to find a mortgage?” She had equity, pension income, and a clear repayment plan. But the system said no. You already know this - it’s the reality for many older borrowers today. Financially capable but boxed out by rigid criteria and automated decisions because they don’t fit the mould. The rise of later life lending The UK’s ageing population is reshaping the market - the numbers speak for themselves. In Q2 2025 alone, over 33k new mortgages were issued to borrowers aged over 55, with lending value reaching £5.2bn1. That’s thousands of clients every week, many with complex profiles and non-standard income. This growth is driven by changing borrower needs. Today’s older clients aren’t just looking to release equity for lifestyle upgrades, they’re: • Still working or semi-retired • Managing more diverse income streams, such as pensions, investments and rental income • Financially supporting family • Seeking financial flexibility to maintain lifestyle and independence The challenge with mainstream lending Despite this shift, many older borrowers still face barriers, with research showing that mortgage rejection rates increase with age2. That’s because mainstream criteria doesn’t reflect these changing needs, with many failing to pass affordability tests despite having a secure financial profile. Age caps, rigid income assessments, and automated systems often shut the door on perfectly viable borrowers, leaving older clients underserved. This is where specialist lenders make the difference In a market where later-life lending is growing rapidly, specialist lenders play a vital role in offering solutions that mainstream providers often can't. They bring flexibility, personal underwriting and a deeper understanding of complex borrower profiles - especially for clients aged 55+. They understand that financial ambition doesn’t stop at 55, that retirement looks different for everyone. At Market Harborough, our daily Credit Committee assesses each case on its own merit, offering flexible solutions that work for your older clients. That means: • Accepting non-standard income, such as pension drawdowns, SIPPs, and rental income • Lending into retirement and beyond, up to age 85/no upper age limit on let and bridging finance • Supporting multi-generational applications, featuring up to four incomes/applicants • Offering interest-only options, with repayment strategies including properties, investments and pension lump sums Later life lending: Why Advisers need a Lender that listens Chris Thompson Head of Sales Market Harborough Building Society
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