The Intermediary – March 2026 - Flipbook - Page 67
L AT E R L I F E L E N D I N G
Opinion
Lending for
those working
into retirment
M
ore people are
choosing to
work past the
state pension
age. Some do it
simply because
they enjoy it, some because they need
the income. Either way, lenders and
criteria need to catch up.
Work is no longer something that
stops at 66. There are now more than
2.12 million people aged 66-plus still
working across the UK. Of those,
around 1.56 million are on company
payrolls, up 12% since 2020–21,
and a further 562,000 are selfemployed, up 8%.
This is not a niche group; it is a
large, growing part of the modern
workforce and it should change how
we think about mortgage lending in
later life.
The problem: too many rules
assume retirement means ‘no income’.
In practice, brokers still see barriers
that come from old assumptions:
Age caps that ignore real
affordability and real income.
Short terms by default, even when
the client’s plans support longer.
Inflexible views on income,
especially part-time work, contract
work, and self-employed income in
later life.
A lack of common sense where a
client is already working and wants
to keep working.
This maers, because the borrowing
need does not stop at 66. Clients still
want to improve their home, clear
debt, support family, or manage a
change in circumstances.
Some need funds to bridge a gap
before downsizing. Others need a
solution that avoids changing a low
first-charge rate. When criteria blocks
these clients at the first check, brokers
DAVID BINNEY
is head of sales
at Norton Home Loans
are le with fewer options, even
where the case is sound.
The plan, not the birthday
If someone is 67 and still in full-time
work, it makes lile sense to treat
them as if they have no income. The
same goes for a 70-year-old consultant
with steady contracts, or a 72-year-old
who works three days a week and has
pension income on top.
This is where specialist lending
should lead. It’s not about ignoring
risk, it’s about assessing it properly.
That means looking at:
What income is in place now, and
how stable it is.
What the client’s plan is for the next
five to 10 years.
Pension income alongside earned
income, not instead of it.
The reason for borrowing and the
wider household position.
The exit, where relevant, and how
realistic it is.
Done well, this is sensible lending. It is
also fairer to a group of borrowers who
are doing what policymakers have
encouraged for years: staying active in
the labour market.
The clients who work past state
pension age are not all the same.
Some are high earners who simply do
not want to stop. Some are in public
sector roles with clear payslips. Others
have mixed income: pension, parttime work, and perhaps rent from
a property.
A one-size approach does not work.
Brokers need lenders who will listen
to the story behind the numbers and
take a view.
How we approach it
At Norton Home Loans, we see more
of these cases each month. Brokers
are dealing with clients who are still
This is not a niche
group; it is a large,
growing part of the
modern workforce and
it should change how we
think about mortgage
lending in later life”
working, still earning, and still have
clear plans, but who keep hiing age
caps elsewhere.
That is why we will consider
applications up to age 75 as standard,
with the option to look beyond this on
referral where the case stacks up.
This is a practical response to what
brokers are seeing in the real world.
If a borrower has the income, the
equity, and a clear plan, the starting
point should be ‘how do we make this
work?’, not ‘computer says no’.
If more than 2.12 million people
over 66 are working today, this is no
longer a ‘later life niche’. The lending
market needs to reflect it with criteria
that recognise modern working lives,
modern income paerns, and modern
retirement choices.
Brokers are already having these
conversations with clients. Lenders
should be ready for them, too. ●
March 2026 | The Intermediary
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