Downsizing Mortgages Later in Life
Downsizing can clear a mortgage, free up money for retirement or help family, and leave you with a home that is easier to run. Many downsizers buy outright. Others still need a smaller mortgage, often in their sixties or seventies, and that is where the choice of lender and the timing of the sale matter.
- Clearing, porting or taking a new mortgage
- Borrowing in your sixties and seventies
- Stamp duty on the next home
- Buying before you sell, and bridging
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Clear, port or borrow again
Clearing the mortgage. If the sale releases enough equity, the mortgage is repaid on completion and you buy outright. Check for an early repayment charge if you are within a fixed rate.
Porting the deal. Taking your current rate to the new home can avoid the charge. Lenders often have specific rules for older borrowers. Nationwide, for example, lets existing borrowers aged 75 and over port only without extending the term, increasing the loan to value or borrowing more.
A new, smaller mortgage. If you still need to borrow, lender age limits decide the term. Our page on mortgages over 70 compares them, and a retirement interest-only mortgage removes the end date altogether.
Helping family. Some downsizers use part of the equity to help children buy. Our guides to gifted deposits and joint borrower sole proprietor mortgages explain the options.
Work out the net proceeds after the mortgage, any early repayment charge, estate agent and legal fees, removals and stamp duty. That figure decides whether you need to borrow.
At a Glance
Stamp duty on the next home
Standard Stamp Duty Land Tax rates in England and Northern Ireland, from GOV.UK, checked 11 October 2026.
| Portion of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
On a £450,000 home this comes to £12,500. Scotland and Wales have their own taxes. Use our stamp duty calculator for your figure.
Timing the sale and purchase
Sell first, buy second. Completing both on the same day is simplest. Selling first gives certainty about the proceeds, but may mean renting or staying with family in between.
Buying before you sell. If you complete on the new home before selling, you will usually pay the 5 per cent higher rates of stamp duty. GOV.UK says you can claim it back if you sell your previous main home within 36 months.
Bridging the gap. A bridging loan can fund the purchase until the sale completes. It is short-term and more expensive, so it suits a sale that is well advanced.
Capital gains tax. Your main home is usually covered by private residence relief, so most downsizers pay no capital gains tax on the sale. Our capital gains tax guide covers the exceptions.
If you plan to borrow, apply before you put your home on the market. An agreement in principle tells you what you can buy, and age limits can make timing matter.
Where to go next
The pages most often read alongside this one.
How we help you downsize
We work out whether you need to borrow before you commit to a move.
Net proceeds
Sale price less the mortgage, charges and moving costs.
The next home
Price, stamp duty and whether you need to borrow.
Port or new lender
Your current deal against the market, within age limits.
Application
Timed with the sale, or with a bridge if needed.
Completion
The old home sold and the new one bought.
Read more about borrowing later in life
Related guides.
Thinking of downsizing?
Tell us the value of your home and the price of the next one. We will tell you whether you need to borrow and how.
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Downsizing Mortgages: Frequently Asked Questions
Can I get a mortgage to downsize in my 70s?
Often, yes. Lender age limits vary widely, from a term ending at 75 to no maximum on some products. A retirement interest-only mortgage has no end date.
Can I port my mortgage when I downsize?
Usually, if your deal is portable and the new home meets the lender’s criteria. Nationwide lets existing borrowers aged 75 and over port only without extending the term, raising the loan to value or borrowing more.
Do I pay stamp duty when downsizing?
Yes, on the new purchase at the standard rates. In England and Northern Ireland that is nothing on the first £125,000, 2 per cent to £250,000 and 5 per cent to £925,000.
What if I buy before I sell?
You will usually pay the 5 per cent higher rates of stamp duty, which GOV.UK says you can reclaim if you sell your previous main home within 36 months.
Will I pay capital gains tax when I downsize?
Usually not on your main home, which is normally covered by private residence relief. There can be exceptions, for example if part of the home was let.
Can I use a bridging loan to downsize?
Yes. A bridging loan can fund the purchase until your sale completes. It is short-term and more expensive, so it suits a sale that is well advanced.
Will I have to pay an early repayment charge?
Possibly, if you repay a fixed or discounted rate early. Porting the deal to the new home may avoid it.
Can I give some of the proceeds to my children?
Yes. A gift can help with a deposit. Lenders will want a gifted deposit letter, and there may be inheritance tax considerations, so take advice.
Should I downsize or take a retirement interest-only mortgage?
It depends on whether you want to move. Downsizing can clear the debt. A RIO lets you stay, provided you can afford the interest for life.
When should I speak to a mortgage broker?
Before you put your home on the market, so you know what you can buy and whether you need to borrow.
Written and reviewed by Osman Emin, CeMAP, mortgage and protection adviser · FCA register OCE01003 · Updated YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.