There are 3 main factors lenders use to decide whether or not to offer you a loan as a pensioner or a retiree. These are: the lender’s age requirements; the minimum income they expect you to have; and whether they’re willing to accept a pension as part of that income requirement. Use the table below to see how these factors play out across a range of different lenders. It’s sorted by upper age limit.
| Lender | Upper age limit | Minimum income | Accepts pension income | Link |
|---|---|---|---|---|
|
Everyday Loans 
|
75 at the start of the loan | £10,000 per year | Not specified | Check eligibility |
|
Shawbrook Bank 
|
75 at the start of the loan | £15,000 per year | Not specified | Check eligibility |
|
Admiral 
|
75 when the loan term ends | £19,000 per year | Yes | Check eligibility |
|
Fluro 
|
74 when the loan term ends | £850 per month | Not specified | Check eligibility |
|
Finio Loans 
|
73 at the start of the loan | No minimum income specified | Not specified | Check eligibility |
|
Bamboo 
|
72 when the loan term ends | No minimum income specified | Not specified | Check eligibility |
|
118 118 Money 
|
70 at the start of the loan | £700 per month | Yes | Check eligibility |
|
My Community Bank 
|
65 at the start of the loan | £18,000 per year | Not specified | Check eligibility |
|
Novuna Personal Finance 
|
No upper age limit specified | £10,000 per year | Yes | Check eligibility |
|
Santander 
|
No upper age limit specified | £10,500+ for loans up to £19,999, or £20,000+ for loans between £20,000 and £25,000 | Yes | Check eligibility |
|
HSBC 
|
No upper age limit specified | £10,000 per year | Yes | Check eligibility |
|
M&S Bank 
|
No upper age limit specified | £10,000 per year | Yes | Check eligibility |
|
Churchill 
|
No upper age limit specified | £850 per month after tax | Not specified | Check eligibility |
|
Reevo Money 
|
No upper age limit specified | £15,000 | Not specified | Check eligibility |
|
BetterBorrow 
|
No upper age limit specified | No minimum income specified | Not specified | Check eligibility |
|
Loans 2 Go 
|
No upper age limit specified | No minimum income specified | Not specified | Check eligibility |
|
Nationwide BS 
|
79 at the start of the loan | £700 per month | Not specified | Read our review |
|
Tesco Bank 
|
74 when the loan term ends | No minimum income specified | Yes | Read our review |
|
Oakbrook Loans 
|
73 at the start of the loan | No minimum income specified | Not specified | Read our review |
|
Norwich Trust Limited 
|
70 when the loan term ends | £1300 per month | Not specified | Read our review |
|
Creation Financial Services 
|
69 at the start of the loan | £9,600 per year | Not specified | Read our review |
|
Bank of Scotland 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
Barclays Bank 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
Ulster Bank 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
AIB (NI) 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
Halifax 
|
No upper age limit specified | No minimum income specified | Yes | Read our review |
|
NatWest 
|
No upper age limit specified | No minimum income specified | Yes | Read our review |
|
Royal Bank of Scotland 
|
No upper age limit specified | No minimum income specified | Yes | Read our review |
|
Monzo Bank 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
Danske Bank 
|
No upper age limit specified | £16,000 per year | Not specified | Read our review |
|
TSB 
|
No upper age limit specified | No minimum income specified | Yes | Read our review |
|
MBNA Limited 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
Zopa 
|
No upper age limit specified | £12,000 per year | Yes | Read our review |
|
Lloyds Bank 
|
No upper age limit specified | No minimum income specified | Yes | Read our review |
|
First Direct 
|
No upper age limit specified | £10,000 per year | Yes | Read our review |
|
Toot Loans 
|
No upper age limit specified | £1,000 monthly income | Not specified | Read our review |
|
Plend 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
Lendable 
|
No upper age limit specified | £800 per month | Not specified | Read our review |
|
Fluent Money 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
Minty Loans 
|
No upper age limit specified | No minimum income specified | Not specified | Read our review |
|
LiveLend  |
No upper age limit specified | £12,000 per year | Not specified |
This is any personal loan or other form of finance that can be taken out by someone who is currently retired or on a pension. Some lenders also offer specialised types of loans that are designed for older homeowners, such as equity release.
Age limit. The maximum age you can be to be eligible for a certain loan. For some lenders, this will be the maximum age you can be when the loan term ends, while for others it may be the maximum age at the time of application.
APR. The annual percentage rate (APR) takes into account the headline interest rate you’ll pay, plus any charges or fees. However, lenders only have to offer the advertised APR to 51% of those who take out the loan, so you may end up getting a higher rate.
Capital. Also known as the “principal” or “loan amount”, this is the original sum borrowed.
Unsecured. A loan which does not use an asset such as property as collateral.
Yes, it is possible to get a personal loan if you’re a pensioner or retired. Most major UK lenders, including Lloyds Bank, First Direct, Santander, Royal Bank of Scotland, AA, HSBC, Post Office, NatWest, Nationwide, Sainsbury’s Bank, Tesco Bank, TSB and Halifax, accept loan applications from customers who are on a pension.
However, your options may be a little more limited compared to someone who is earning a regular salary. You may also find it harder to get approved for larger loan amounts unless you’re prepared to use an asset as security against your loan.
Retired people can pose a greater risk for lenders as, without a regular salary, they may struggle to meet their repayments. As a result, lenders may either offer higher rates to older borrowers, shorter terms, or simply refuse loan applications altogether.
However, some lenders recognise that retired people may make good candidates for a loan if they meet other criteria and will consider applications on individual merit. Many retired people have assets that are more valuable than their incomes, such as equity in the family home. Lenders can choose to take this into account and offer loans secured against your house, rather than more popular unsecured personal loans.
When you apply for a loan, lenders will take a number of factors into account before deciding whether to let you borrow, including your income.
Most lenders will accept pensions as a form of income, whether that’s the state pension, a defined contribution or personal pension (those that you contribute to yourself) or a defined benefit pension (those based on your salary and how long you’ve worked for your employer).
Additionally, lenders will look at whether you earn income from a part-time job, while rental income from buy-to-let properties or dividends from investments may also be considered. The more income you have to cover your loan repayments, the more likely you are to get accepted. Keep in mind that housing benefit is not usually classed as income and won’t be counted.
Your age can also affect whether you get approved for a loan. Many lenders set a maximum age for loan applications or restrict the loan’s term so that it is paid back before you turn a certain age. Most major banks offer loans for those aged 70 or over. But some lenders, including Sainsbury’s Bank and Nationwide Building Society, will let you take out a personal loan if you’re over 79. You can still be eligible for a loan if you’re over 80, but you may find that you have a more limited choice of lender compared to someone aged under 75. This makes it very important to shop around.
Your chances of getting accepted for a loan will also be higher if you have a good credit score and have managed repayments on other types of credit well. It’s harder, though not impossible, for older borrowers with poorer credit to access loans, but you may be offered a smaller loan amount, and the interest rate charged may be higher than for someone with a good credit score.
If you have bad credit, you might need to consider secured rather than unsecured loans. To apply for a secured loan, you’ll need assets such as a property or vehicle to use as collateral. If you’re unable to repay the loan, the lender could repossess these assets.
Unsecured, personal loans are the most popular loan option. They allow you to borrow a fixed sum of money that you repay over a fixed term, with fixed monthly payments. Unsecured loans generally come with higher interest rates than secured loans, but they don’t require you to use an asset as security.
Secured loans can be particularly suitable if you’re a pensioner or retiree who now has a lower income, but owns a lot of equity in their home or in other assets. Secured loans typically allow you to borrow much larger amounts compared to an unsecured loan and interest rates are usually more competitive. Repayment terms can also be longer, helping reduce the size of your monthly repayments.
However, secured loans should be considered carefully. If you’re unable to keep up with your repayments, the lender could repossess your asset to recoup the money.
With an equity release mortgage, you can release the equity in your home without having to make any repayments. You simply roll up the interest on the loan, which is then payable on death, or you can choose to repay the interest monthly. Equity release mortgages are suitable in some circumstances but affect your spouse and children’s inheritance so require careful consideration.
Credit cards also offer certain advantages over personal loans. If you need to make a large purchase, you could take out a credit card with a 0% interest period, which will allow you to pay off the expense over several months without incurring interest.
Alternatively, a money transfer credit card lets you transfer a portion of your credit limit across to your bank account. Unlike a regular personal loan, it’s possible to borrow money using a credit card without ever having to pay interest, provided you pay off your balance in full each month.
Credit unions are local community organisations run by members, for members. They can be a good place to obtain unsecured loans for older borrowers. You can find your nearest credit union here.
To decide which loan type is best for you, calculate how much you need to borrow and how much you can afford to repay. Then work out which type of loan is best suited to your financial and personal situation.
As a next step, use an eligibility checker to check your eligibility based on age and minimum income. This will show you which loans you’re most likely to be accepted for without hurting your credit score. Then find the most competitive loan that you’re eligible for and start the application process.
This will partly depend on your income. If you have limited income, you may find that a lender is less willing to offer you a larger loan amount.
However, it will also depend on whether you’re applying for an unsecured or a secured loan. For unsecured personal loans, you’ll usually be able to borrow up to £25,000 or £30,000, although some lenders offer loans of up to £50,000.
For secured or homeowner loans, you may be able to borrow up to £500,000 depending on the lender. You will also need to use your property as security against the full cost of the loan. However, the actual amount you can borrow on a secured loan is limited by what’s known as the loan-to-value (LTV) ratio. This is the ratio between the size of the loan amount and the value of your house.
For example, if a secured lender only offers loans up to a maximum LTV of 70%, you’ll only be able to borrow 70% of the total value of the equity you own in your home. This means you wouldn’t be able to get a loan for £500,000 if your home is only worth £200,000.
As with any loan, it’s important to only borrow as much as you can afford to repay, and don’t borrow more than is necessary.
The age limit is usually the maximum age at the start of application, but it may also refer to the maximum age you can be when the loan term ends. The maximum age limit will vary depending on the lender, but is often between 70 and 75.
Yes, but they’re one of the more expensive options out there. These loans are typically called pension advances, pension sales, pension loans or pension buyouts. You’ll usually be asked to sign over your monthly pension payments in exchange for a loan that lasts between 5 and 10 years.
This type of loan is similar to a payday loan in terms of expense, with APRs easily topping 100%. You may also have to buy a life insurance policy with it, making it even more costly.
There are a number of reasons you might want to take out a retired loan. For example, you could use it to consolidate existing debts, such as credit cards and loans, into one monthly payment. Not only can this be more manageable, it can also work out cheaper. Alternatively, you might want to fund the purchase of a new car or home improvements, or maybe you want to pay for the holiday of a lifetime.
There are a number of things to consider before applying for a loan in retirement. For a start, consider whether you would be better off with other types of borrowing, such as a credit card.
You should also think about whether you really need to borrow the funds and if so, whether you can afford to repay the amount you wish to borrow. Ask yourself if there are likely to be any other large outgoings in the near future that could affect your ability to repay the loan or that could require you to borrow more.
If you decide a loan is right for you, always check the eligibility criteria carefully to make sure you qualify. As part of this, it’s worth checking your credit score as you’re more likely to be accepted for a loan if you have a good credit history. To keep your interest bill down and clear your debt as quickly as possible, it’s best to go for the shortest term and highest repayments you can manage.
If you own your own home, you could use this equity to secure a loan – in other words take out a mortgage. Typically, mortgage lenders will consider borrowers who are between 70 and 85 when the term ends, but this varies. If you’re already paying off a mortgage, then a second charge mortgage may be an option. However, you’ll need sufficient income to cover day-to-day living costs plus the repayments on your borrowing.
A loan application typically only takes around 15 minutes, although this varies depending on the lender. Your loan could then be approved and funded in as little as a couple of hours, or it may take up to 2 to 5 business days, depending on the type of loan.
When you borrow through a personal loan, you pay back the amount borrowed in fixed monthly instalments, with interest added on top.
You can lower your monthly repayments by lengthening the loan term. But this also means you’ll pay more in interest over the term of the loan. If you can afford higher monthly repayments, it will work out cheaper in the long run to choose a shorter loan term.
Elaine and David have paid off their mortgage and retired. Their home is worth £400,000, they earn a basic joint income from their pensions of £28,000, but don't have other savings. Nor do they have any other debt. They want to help their daughter buy a new car by giving her £6,000 to put towards it. They are 70 and 72 years old.
After tax, their joint monthly income is roughly £1,800. The couple could take out a loan over 5 years, with an APR of 7%, giving repayments of £118 a month, leaving them enough to cover their outgoings. This would mean they'd pay £1,128 in interest payments. A shorter term of 3 years would give monthly repayments of £185, which would still be affordable to the couple and they'd only pay £669 in interest.
* This is a fictional, but realistic, example.
When you need extra funds and you’re retired, loans can be a good option, particularly if you have a good credit history and interest rates are competitive. Make sure you shop around, check eligibility criteria carefully and do not borrow more than you can afford.
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Am I to oid to take out a personal .I am 77years and would want the loan for 6 years.
Hi Pat,
Thanks for your inquiry. Every lender has their own underwriting policies and in the market for loans for retired people, there are no general terms and conditions that apply across the board. This makes it very important to shop around. But it’s your general financial picture, rather than the purpose of the loan, that is more important.
You can shop for lenders on our page by going to the part of the page that says “Eligibility” and don’t forget to see your loan options on the part of our page saying “What loan options can I consider as a retiree?”
It could be a good idea to speak to an advisor about whether it is best to use some of your assets or to take out a loan if you have any. There are equity release specialists, such as Saga and Key Retirement Solutions. However for personal loans, there are no specialist lenders. As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.
Hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki