Martese Carton (pictured), Leeds Building Society’s head of intermediary distribution, said: “The age of first-time buyers is increasing and more borrowers are taking out mortgages longer than the traditional 25-year term.”
She added: “These are among the reasons more people are likely to have a mortgage beyond their retirement age. We have already reviewed and improved our lending criteria in recognition of this growing sector of the market. We have now added a tool on our website to give brokers more information about what proof of income they may need to provide in support of their client’s application to make this process easier.”
In October 2016 the society announced it would change its criteria for people borrowing into retirement.
At that time Leeds Building Society increased the maximum term from 25 years up to 40 where the customer was borrowing past their stated retirement age.
Commenting, Richard Fearon, Leeds Building Society’s chief commercial officer, said: “The age at which people now step onto the property ladder is increasing so logically their age at the end of their mortgage may also be higher.”
He added: “As the UK population ages and life expectancy increases, this market is only going to grow and lenders need to address the changing needs these demographic shifts are creating. These changes include younger borrowers choosing a longer term, which means their mortgage could continue into their 60s or 70s. We are responding to this changing demand and behaviour – as we did when we increased our maximum age for residential borrowers from 75 to 80.”