Financial planning

The benefits of downsizing later in life

At Mattioli Woods, we endeavour to keep your interests at the heart of everything we do, which is why we continue to expand our range of services, offering you solutions to complement your financial planning strategy.

Our subsidiary, White Mortgages Ltd, has access to over 100 lenders and provides a comprehensive ‘whole of market’ service that could benefit many of our clients.

Director Steven White has put together some of his thoughts on why you may want to consider downsizing, as for many this can be a wise financial move, releasing equity and reducing expenses.

24 April 2024
5 minutes

Financial benefits

In our later years, we are often left with an ‘empty nest’ with more space than we need. By selling a higher value property and downsizing to one of lower value, you can unlock equity accumulated in your home. This could be used to fulfil your own leisure aspirations – hobbies, travel etc. – or to help your children and/or grandchildren with those larger expenses such as a deposit on their home or even university fees.

Reduced domestic maintenance

It is no secret that as we age our bodies can start to lose strength, endurance and mobility, so downsizing could be a health requirement rather than a financial one. Moving into a smaller property can be beneficial as it reduces various aspects related to home maintenance. This not only reduces the upkeep of a larger home but also the time spent on maintenance – and those chores! 

Benefits to health and wellbeing

Mobility is another issue that needs to be considered in later life. Around 1.8 million households[1] in England need accessible housing, with 580,000 of those at working age. Downsizing into a property more ‘suitable’ to your needs – such as a bungalow – is a big draw. Not only can you move to somewhere that can help with current/future care needs or physical changes but you could also free up some cash to pay for further renovations or even carers when the time comes. 

It is important to remember that while downsizing can be seen as a positive experience for many, there are of course some negatives.

The emotional factor

For many older people, your existing home has been the centre of most of your adult family life. It is often the place you started your family, watched your children grow and therefore have formed many deep attachments to the property. For some, leaving such a happy, memory-laden home can simply be fundamentally unappealing.

Supply, cost and timing

It is a well-known fact that the UK housing market has an inadequate supply of properties, meaning you could have difficulties with affordability, suitability and quality of a property. For those with mobility issues, a bungalow could appeal but supply could be limited. Likewise, newly advertised properties are often snapped up by ‘willing and able’ buyers, disadvantaging those who are selling with timing issues, especially if the new property is reliant on the sale of the current home.

How can White Mortgages help?

If you have found the perfect new home and want to move as soon as possible, you may feel forced into a quick sale of your old property. However, you could use a downsizing bridging loan to try to get the best possible price. You will then have up to 12 months to sell your old home and repay the loan in full.

There are no monthly payments and no early repayment charges. Instead, you will simply pay back what you borrow, plus interest, as a lump sum using the proceeds of the sale of your previous home.

For more information, please contact White Mortgages:

I would like to chat about my mortgage options

If you would like to discuss your current wealth management strategy, please contact your consultant or email

Mattioli Woods plc is authorised and regulated by the FCA.
Mortgages are arranged by White Mortgages Ltd, a subsidiary of Mattioli Woods plc.
White Mortgages Ltd is authorised and regulated by the Financial Conduct Authority. FCA Number 551714.


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