Once you retire, the way lenders assess your mortgage affordability changes. You might no longer have a salary coming in, but that doesn’t mean the door to borrowing is closed.

There are more products than ever aimed at helping you access a mortgage in retirement in Sheffield, as long as the numbers add up.

How Do Lenders Calculate Affordability?

Affordability in retirement is all about showing steady income. That could be from your state pension, workplace pensions, private pensions, or other sources like investments or rental income. Lenders want to know you can comfortably cover repayments, especially over the long term.

Some products also allow you to use assets or savings to support your case. If you’re applying with a partner, joint income will often boost your borrowing power, even if one of you is no longer working.

What Mortgage Products Are Available?

There are a few different options when it comes to securing a lifetime mortgage in Sheffield.

If you’re still working or drawing a decent pension, a standard repayment mortgage may still be available. These work just like any other mortgage, where you pay back the capital and interest each month.

You could also look into retirement interest-only mortgages. These allow you to make interest payments every month, with the capital repaid from the sale of the property later down the line.

If you’re over 55 and want to access equity without monthly repayments, a lifetime mortgage may be suitable. This is a form of equity release in Sheffield, allowing you to unlock tax-free cash tied up in your home, with the loan repaid when the home is eventually sold.

What Factors Affect How Much You Can Borrow?

Your borrowing potential in retirement depends on a few key things:

  • The level of your retirement income.
  • Your age and the term you want the mortgage to run for.
  • How much equity do you hold in your home?
  • Any existing debts or outgoings?
  • Your credit history and overall financial health.

Each lender has different rules, so it helps to explore more than one option. Some lenders take a flexible view of retirement income and are more open to different repayment structures.

Date Last Edited: June 4, 2025