Nationwide has today become the latest lender to increase its age limit for people paying off mortgages.
Borrowers will now be able to take out a mortgage that lasts until the age of 85, as long as they can prove they’ll be able to afford the payments. The previous age limit was 75.
The extension, which will come into force in July, follows hot on the heels of last week’s announcement that Halifax will increase the age limit on its mortgages from 75 to 80.
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New mortgages for older borrowers
There have been growing calls for lenders to offer extra help to older buyers, with the Building Society Association (BSA) and Council of Mortgage Lenders (CML) both campaigning for high-street mortgage providers to do more to aid borrowers of retirement age.
Until the announcement by Halifax last week, however, major lenders had generally steered clear of increasing the age limits on mortgage products.
Nationwide’s new limit means that, in theory, a 60 year old will be able to take out a 25-year mortgage. This could make life much easier for people borrowing into retirement.
The deal will be available to existing Nationwide customers applying for standard mortgages, provided the loan size is less than £150,000 and no greater than 60% of the value of the property.
Find out more: how to get good mortgage advice – the questions to ask a mortgage broker before deciding whether to use them
What other mortgage deals are out there for older borrowers?
Some smaller lenders have long offered deals for older borrowers. According to the BSA, around 20 providers offer mortgages with no upper age limits at all.
It remains to be seen whether any other high-street lenders will follow Halifax and Nationwide by changing their limits. Their policies are currently as follows:
- Santander: upper age limit of 75
- RBS: upper age limit of 70
- Barclays: upper age limit of 70 or the customer’s retirement date, whichever is sooner
- HSBC: reviews applications for over 75s on a case-by-case basis
- Metro Bank: no official cap; applications reviewed on a case-by-case basis
To see all the available mortgages on the market at the moment, visit Which? Money Compare mortgages.