How to budget for a mortgage in retirement

Is having a mortgage in retirement right for you?  

If the answer is yes, then we can help.  

Planning for a mortgage in retirement can feel overwhelming. But it doesn’t have to be that way! With the right tools and a clear plan, you can take control of your budget and enjoy a financially secure retirement. Here is how to get started:  

Step 1: Know your numbers 

The first step in budgeting is knowing how much money you have coming in and how much is going out. 

• Income: Add up pensions, rental income, and any other reliable sources of funds.

• Expenses: Include your living costs, bills, and any current payments. 

When you know where you stand, it is easier to plan and avoid surprises. 

Need help? Try our mortgage calculator to see how much you can borrow and what your monthly payments might look like. Understanding your finances is the first step to feeling in control.

Step 2: Explore interest-only mortgages 

Looking for smaller monthly payments?
A Retirement Interest-Only (RIO) mortgage might be the right choice. Here is how it works: 

• You pay only the interest each month, not the loan amount. 

• This keeps your payments smaller and easier to manage. 

With a RIO product, you don’t need to repay your loan until you, or if it’s a joint mortgage, the last remaining one of you dies or decides to live elsewhere long term. For example, if you move into a residential home.

With predictable payments, you will have more financial freedom to focus on what makes you happy.

Step 3: Plan for stability 

Retirement should be relaxing, not stressful. That’s why at Perenna, we offer mortgages with the same payment amount for up to 40 years. This way, you’ll always know what to expect and won’t have to worry about changes. 

Here is why fixing your rate matters: 

• Predictable costs: Your payments stay the same, no matter what happens with interest rates in the market. 

• No surprises: You will always know what to expect each month. 

Fixing your mortgage gives you peace of mind and lets you focus on enjoying your retirement.

How can Perenna help? 

Age is but a number. That’s why our mortgages are designed to fit your needs in retirement: 

• No maximum age caps – giving you options at any stage of life. 

• Predictable payments – making budgeting stress-free. 

• Flexibility as standard – short early repayment charges of just five years. We know life doesn’t stop when you retire. Whether you need a mortgage to help with money, fix your home, or enjoy your free time, we’re here to help.

Take control of your retirement 

Budgeting for a mortgage in retirement doesn’t have to be complicated. With the right plan and the right product, you can make it work for you. 

• Try our mortgage calculator to find out how much you can borrow. 

• Find a broker for tailored advice that fits your needs. 

Retirement is your time to enjoy life. Let Perenna help make it easier! 

You could lose your home if you don’t keep up your mortgage repayments. 

Correct at time of publishing