Leeds follows Nationwide’s lead on mortgage age

Leeds follows Nationwide’s lead on mortgage age

Leeds Building Society is increasing its maximum age for residential mortgage applications from 75 to 80.

The move comes as the latest in a number of lending criteria changes, which include removing maximum tenancy periods for buy-to-let mortgages, and accepting sale of property as a repayment strategy for part and part interest-only mortgages.

Richard Fearon, chief commercial officer at Leeds Building Society, said: “We keep our lending criteria under review as we seek to respond to borrowers’ needs and help more members to have the home they want.

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“Life expectancy is increasing and our change to the maximum age on mortgage applications acknowledges this fact.

“The age of retirement is also less rigid than it was and many people reaching this point in their life may continue to work full or part-time and are stepping back from their careers in a more gradual way.

“The society’s maximum age for buy-to-let mortgage applications remains at 80.”

Adviser view

Greg Sturrock, an independent mortgage adviser at Thomas Heald Ltd, said: “Leeds Building Society’s move is relevant to what’s going on with the lending market today.

“People are having to take longer terms on mortgages purely based on the tightening up of EU affordability calculations. If you have somebody aged 70, they may no longer fit the criteria of their own mortgages, in which case a Leeds Building Society mortgage would be a good choice.”

Leeds’ decision to increase the maximum age for mortgage borrowers comes after Nationwide Building Society increased its maximum age for mortgage maturity from 75 to 85 in May, giving it the highest age threshold of any high street lender.