Later-Life Mortgages After Divorce

Divorce or separation later in life can create a need to buy out a former partner, raise a lump sum, refinance an existing mortgage or purchase a new home. Several mortgage routes may be worth considering.

Income-based borrowing

If pension or other income supports the payments, a conventional repayment, interest-only or RIO mortgage may be possible depending on lender criteria.

Lifetime mortgage

For eligible homeowners, a lifetime mortgage can potentially raise funds without mandatory monthly payments on many plans. The long-term effect of roll-up interest and the reduction in estate value need to be considered.

Buying a new home

Lifetime mortgages can also be used as part of a property purchase where the applicant contributes cash and the lifetime mortgage provides the balance, subject to criteria. Read about using equity release to buy a property.

Reviewed by David Farrell. Last reviewed: 3rd October 2026.