At the end of last week, Lloyds Bank increased its maximum age at term-end to 80, up from 75, which also applies to any deals received from Halifax and Scottish Widows Bank from today. Joint applications will use the age of the oldest applicant as the maximum age.
Nationwide said the July move is just the first of a ‘series of enhancements’ to offer more support to retired borrowers.
The Nationwide move will enable existing customers with retirement income to apply for a mortgage up to the age of 80, with a maximum age at maturity of 85, including house purchases and further advances.
The option will be available on all standard Nationwide mortgage products up to 60% loan-to-value (LTV) and 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: “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.”
Moneyfacts figures suggest eight other mutual lenders are already lending to 85 years of age with a raft of other lenders including HSBC, First Direct, Metro Bank and Family Building Society with no maximum lending age at all
Andrew Montlake, director at London-based mortgage adviser Coreco, said: “I think this is a very positive move, in the wake of Halifax upping their limit to 80 another big lender has moved further still to 85. This is good news for many borrowers who felt that they were being persecuted simply because of their age and hopefully many other lenders will follow suit.
“Whilst I believe that all lending should be based purely on affordability rather than age at all, this is a substantial move that should be welcomed.”
Ishaan Malhi, founder and CEO of mortgage adviser firm Trussle.com, said: “Nationwide’s move continues a recent trend of major lenders finally reacting to societal changes. Whilst overdue, it’s a welcome response to the pressures felt by elderly homebuyers and despite it’s limitations, is a step in the right direction, making home ownership more accessible and affordable to everyone.”
