Nationwide is raising its age limit for people paying off mortgages by 10 years to 85.
Bright Advice – Mortgages St Neots
According to Nationwide the increase in age is down to a “growing demand”, and the new age limit will be in force from as soon as July. It therefore means that someone who is 60 years of age could take out a 25-year mortgage as long as they are able to prove they can afford the repayments.
The move comes as little surprise, after Halifax increased their age limit to 80 from 75.
There have been numerous calls for the industry to do more to help older buyers after tougher mortgage checks, introduced in the wake of the financial crisis made it harder for middle-ages people to get a home loan.
Controlled Manner – Mortgages St Neots – Bright Advice
Rising house prices have exacerbated the issue, with many people now not able to afford to but their first home until they are in their mid thirties or forties.
Nationwide said that the new age limit would apple to existing customers for all its standard mortgages. However the maximum loan size will be £150,000, and can be no more than 60% of the property value.
Henry Jordan, Head of Mortgages at Nationwide said: “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”
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A recent survey carried out by Halifax, suggested that one in three 20- to 45-year-olds expected to be working beyond their retirement age to pay off their mortgage.
Halifax said its decision was a response to changing demographics, with people living and working for longer.
The policies of rival mortgage lenders for older borrowers varies. Santander, for example says 75 is its cut-off, whilst RBS’ age limit is 70. At Barclays there age limit is 70. or alternatively the customer’s retirement date, whichever one comes first.
Your home may be repossessed if you do not keep up repayments on your mortgage.