The Society had already announced it was to allow existing Nationwide mortgage customers with retirement income the option of borrowing up to the age of 85, and this will now be extended to borrowers remortgaging from other lenders from mid-July. It will initially be available through intermediaries only, with the opportunity to apply directly through Nationwide planned to follow in August.
Henry Jordan (pictured), Nationwide head of mortgages, said the society was looking to support customers in retirement.
“Our research has shown that older borrowers predominantly look to use their primary asset, their home, to give both them and their family more choice about their lifestyle options,” he said.
“This may include altering their homes or providing financial support to family, such as helping a relative to raise a deposit.”
He said the Society was being prudent in its approach and customers will need a stable and ongoing retirement income to qualify.
“We will reflect the additional risks that older borrowers may face by basing our assessment for joint borrowers on the proportion of income which will continue, should part of that joint income be lost during the mortgage term,” said Jordan.
The option will be available across the product range, with a limit for any new borrowing of £150,000. Loan-to-values will be limited to a maximum of 60% and the maximum age at application is 80. The criteria will be the same for both existing Nationwide mortgage customers and those remortgaging from other lenders.
