Nationwide has announced this week it will be increasing its maximum age limit from 75 to 85 in order to meet increasing demand from older borrowers across the market.
The new limit will be available across all standard Nationwide mortgages up to 60% loan to value (LTV) with a maximum loan size of £150,000. The maximum age limit when applying for a new mortgage now stands at 80 with a 5-year term. This enables existing customers with retirement income to apply for a mortgage up this age, which includes both house purchases and further advances.
This marks one of the highest deal term-ends currently on the high street and the first of a series of enhanced offers from Nationwide looking to provide further support to retired borrowers. This follows the lender’s previous alteration to its approach when assessing retirement income in February and now uses a customer’s anticipated retirement age, rather than the state pension age.
It seems a trend has been provoked across the market, as many major lenders have begun to react to societal changes, ensuring access to the mainstream market is less of a challenge for older customers.
Halifax also announced it will be raising its upper age limit from 75 to 80 on all mortgages, new applications, further advances and product transfers. The term must end before the borrower’s 80th birthday for joint applications.
This follows evidence from research conducted by the lender that a suggested 1 in 3 20 to 45 year-olds expect to be working beyond their retirement age to be able to pay off their mortgage.
Elsewhere on the market, HSBC, Santander and Virgin require borrowers to repay their loan by the age of 75, or 70 for Barclays and RBS. However, up to 22 building societies now lend up to the age of 80 or 85, with some even holding no maximum age limit at all.