x
By using this website, you agree to our use of cookies to enhance your experience.

TODAY'S OTHER NEWS

Nationwide hikes maximum lending age to 85

Nationwide Building Society is increasing its maximum age for mortgage maturity from 75 to 85.

This follows last week's move by the Halifax to increase its age limit from 75 to 80, to adapt to the ageing population.

Nationwide says its decision forms part of its ongoing plan to bring more flexibility and choice to older borrowers.

The society said that it now offers the highest age threshold of any high street lender.

Its revised criteria will be effective from July 2016 and support borrowers in retirement.

Under the change, existing customers with sufficient retirement income can borrow up to age 80, with a maximum age at maturity of 85.

It will apply to a range of mortgage borrowing, including house purchase and further advances.



The option will be available on all standard Nationwide mortgage products up to 60% LTV, with a maximum loan size of £150,000.



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



Henry Jordan, Nationwide head of mortgages, said: “We are 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.”  

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up