After you retire, where your money goes is important. Not only do you need to choose which of your assets you’d like to keep and enjoy, but you’ll also need to navigate the complex financial landscape if you’re still paying a mortgage.

Factors including interest rates, types of loans, and age-specific considerations all play a role in how you’ll choose to plan your retirement income. Whether you’re thinking of retiring soon or wondering how best to help a loved one, it’s worth knowing about the savings options available to those over 65.

Which mortgage options are best for after retirement?

Fixed-rate mortgages

Fixed-rate mortgages

Fixed-rate mortgages do exactly what they say on the tin: offer a mortgage with a fixed interest rate on the repayments.

These make a sensible option if stable financial planning is your biggest priority. A fixed mortgage would provide stability and predictability every month and allow you to plan your other monthly outgoings more accurately around it.

The only potential drawback could be that if the Bank of England changes base interest rates, the interest on your mortgage would be unaffected. This could mean that you’d end up getting a better or worse deal than those on a flexible plan, depending on the circumstances.

However, consistent interest rates could be positive in tough economic times.

Refinancing and mortgage strategies

Refinancing and mortgage strategies

Refinancing typically involves replacing your current mortgage with another one. Many retirees who choose to refinance will do so to access favourable interest rates that align more closely with their personal financial difficulties.

There’s also the opportunity to utilize your home equity, but it’s best to use an equity release calculator to find out exactly how much you could save. Even though you might not receive the full market value of your home, you might be more comfortable in the meantime.

You can use several strategies to approach changing how you pay for your home. You could reduce your mortgage debt by downsizing, which involves moving into a smaller home and paying with some of the balance of your older, larger home.

Reverse mortgages

Reverse mortgages

Reverse mortgages could help to make extra money and flexibility during your retirement. In a reverse mortgage agreement, you would hand over equity in your home in exchange for regular payments.

This is effectively borrowing some of the equity in your home to use as security.

If you’re 60 or over, it’s unlikely that you’ll be able to borrow more than 20% of the value of your home. However, if your estate is highly valuable, this could be more than enough to sustain a comfortable lifestyle through retirement.

It’s worth remembering that a reverse mortgage could impact the inheritance you’ll be able to distribute to your loved ones.


Choosing the most suitable mortgage option for your personal and family circumstances is imperative. Don’t forget that if you’re struggling to organise your finances, you can always seek advice for debt and money online.

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