Highest age for a mortgage is now 85

May 15, 2016 by Brendan O'Neill

Borrowers

Borrowers who are seeking a mortgage at the age of 80 will have no problem, as the Nationwide will grant a mortgage at that age to last for a five-year term.

The Nationwide previously had an age limit of 75, but has now increased this to 85 years old, which may raise some concerns among experts. The Halifax recently changed its maximum lending limit to the age of 80, but Nationwide has surpassed it. Although this is welcome news for older borrowers, experts believe that some people will borrow money to pass to their grandchildren.

Older borrowers will be able to apply for a mortgage of up to £150,000 as long as they can prove that they have sufficient income in retirement to meet the repayments. The loan will only be approved if it is 60% or less of the property value.

According to one mortgage broker, Aaron Strutt, people in their 60s have been rejected by lenders until recently, which has meant that they could only borrow over a 10 or 15-year term, making repayments more expensive.

Strutt also stated that other lenders would follow the example set by the Halifax and raise upper age limits. However, he also added that he didn’t think it would be as quick. Older borrowers will find that extending mortgage terms will reduce monthly payments and make paying a mortgage more affordable.

A mortgage adviser who has taken a CeMAP training course will have experience of which lenders consider approving applications from older borrowers.