MortgagesApr 6 2016

Mansfield latest to extend mortgage age limit

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Mansfield latest to extend mortgage age limit

Mansfield Building Society has increased the maximum age on its two-year discounted rate by five years.

Previously the mortgage would have to be repaid before the borrower turned 80, but this has now been extended to 85.

The two-year discounted rate product is available to 60 per cent loan-to-value, for purchase or remortgage with a maximum repayment term of 30 years. The new age limit is available on a capital repayment basis only.

Mike Taylor, the society’s product and marketing manager, said they are responding to demand from borrowers for more choice around mortgages later in life.

“Building Societies have committed to review their maximum age policies. We are clear that we can extend the maximum age whilst being a responsible lender, because each case is individually assessed by an underwriter based on the applicant’s personal circumstances.”

In November last year, a report from the Building Societies Association committed the sector to reviewing maximum age policies, as more people expect to be paying off their mortgage into retirement.

Mr Taylor commented that a common sense approach assesses each case on its own merits, ensuring older borrowers have access to mortgage options.

The Mansfield is one of a number of societies which has pledged to review its age criteria in recent months, following for instance The Dudley’s announcement in January that it would remove all upper age limits on its mortgages.