The “traditional” retirement is changing. According to the latest data from UK Finance, lending to over-55s surged by over 18% in late 2025, with £6.5 billion in loans advanced in a single quarter.
At Custom Mortgages and Finance, we are seeing a significant shift in how homeowners approach their wealth. It’s no longer just about “paying off the mortgage”—it’s about using housing wealth to manage longer retirements and navigate the current economic climate.
What’s driving this record growth?
The Rise of RIOs: Retirement Interest-Only (RIO) mortgages saw an 11.7% increase recently. Borrowers are increasingly opting to pay the interest monthly rather than letting it roll up, keeping more control over their equity.
Regulatory Tailwinds: The FCA is planning to exempt RIOs from certain strict bank limits. This is a game-changer, designed to unlock housing wealth and provide more flexibility for those borrowing past state pension age.
The 65+ Milestone: More than half of all new mortgages now end after the homeowner’s 65th birthday. Borrowing into retirement is becoming the “new normal.”
Strategic Debt Management: High interest rates and inflation have led many to use equity release or specialist products to consolidate debt or support family members getting on the property ladder.
The Need for Specialist Advice
While the market is growing, it is also under more scrutiny than ever. With the FCA’s focus on “Consumer Duty,” it isn’t just about finding a product—it’s about justifying the suitability of that product for your specific long-term outcome.
Planning for your future? The right choice today can protect your inheritance and your standard of living tomorrow. As the market evolves, having a specialist in your corner is essential.
If you’re exploring how to use your property wealth effectively in later life, get in touch with the team at Custom Mortgages and Finance for a transparent, expert consultation.
