Lender Maximum Age Policies and What They Mean for Over 65s
Maximum age at the end of the loan term is the most common barrier for over-65 borrowers seeking a secured loan. Most mainstream lenders set a hard cap at 70 or 75 — meaning a 66-year-old can get a four to nine year loan from a 70-cap lender, or a nine to fourteen year loan from a 75-cap lender. These terms are shorter than those available to younger borrowers, which increases monthly repayments for the same loan amount.
Specialist lenders have substantially higher maximum age policies. Pepper Money and Spring Finance typically lend to age 80 at end of term, while Together Money lends to age 85. This means a 66-year-old can access a fourteen-year loan from Pepper Money (to age 80) or a nineteen-year loan from Together Money (to age 85), significantly reducing monthly repayments compared to a shorter term from a mainstream lender.
The maximum age policy is set by lenders to manage the risk of the loan outlasting the borrower and any uncertainty about how it will be repaid. For older borrowers, lenders are also interested in the exit strategy — how will the loan be repaid if you are still alive at the end of term, or if you need to move to long-term care before the term ends? Clear answers to these questions — downsizing, equity release to refinance, or repayment from the estate — help lenders make a positive decision.
It is also worth noting that the FCA's Consumer Duty, which came into force in July 2023, requires firms to demonstrate that they are delivering good outcomes for customers, including older and potentially vulnerable customers. This has been a positive force in the market, encouraging lenders to develop age-appropriate products and criteria rather than simply blanket-refusing older applicants.
Income Sources for Over-65 Borrowers
Borrowers over 65 will typically have access to the state pension (currently £11,502 per year for the full new state pension), one or more private or workplace pensions, and possibly benefits such as Attendance Allowance, Pension Credit, or PIP. Combining these income sources gives a fuller picture of qualifying income than presenting any single element in isolation.
Defined benefit pensions from public sector employment, older private sector schemes, or final salary plans are the strongest income type from a lender's perspective — guaranteed for life and fully index-linked. Annuity income is similarly guaranteed. DC pension drawdown requires evidence of pot sustainability but is accepted by specialist lenders.
Attendance Allowance — the disability benefit for those over 65 with care needs — is worth £68.10 per week at the lower rate and £108.55 per week at the higher rate (2025/26), adding £3,541 or £5,645 annually to qualifying income. As a non-means-tested benefit, it is accepted by virtually all specialist secured loan lenders. If you are entitled to Attendance Allowance but have not yet claimed it, applying before a secured loan application will strengthen your income position.
Rental income from a second property or a let room under the Rent a Room scheme is also accepted by most lenders as qualifying income, provided it can be evidenced with tenancy agreements and bank statements. For many older homeowners who have built up a rental portfolio or let a room in a large family home, this can be a significant additional income stream.
