Nationwide increases mortgage age limit to 85

Nationwide increases mortgage age limit to 85

Nationwide Building Society is increasing its maximum age for mortgage maturity from 75 to 85, giving it the highest age threshold of any high street lender.

The revised criteria will be effective from July.

According to the building society it is the first in a series of enhancements it will be launching aimed at offering greater support to borrowers in retirement.

Following the change, existing customers with a retirement income will be able borrow up to the age of 80, with a maximum age at maturity of 85.

The option will be available on all standard Nationwide mortgage products up to 60 per cent loan-to-value and a maximum loan size of £150,000.

In February, Nationwide simplified its approach to assessing retirement income, now using the customer’s anticipated retirement age rather than the state pension age, up to a maximum age of 70.

Head of mortgages Henry Jordan said the building society was taking a series of steps to meet a growing demand from customers to be able to borrow in later life.

“These customers are often asset rich, with significant equity in their home, and they wish to have the flexibility to borrow against it.

“Access to the mainstream market has been a challenge for older customers, resulting in their needs going unfulfilled. This measure helps to address these needs in a prudent, controlled manner.”

Dean Mirfin, technical director at Key Retirement, called the move further good news for older borrowers, although he added the affordability and overall lending criteria will prove to be central to whether this really will enable many older borrowers to actually borrow.

“Many lenders are struggling with criteria under pensions freedoms and as a result may still exclude those who have affordability but not structured in acceptable forms for lenders to lend to them.”