Upper lending limit increase reflects needs of older borrowers

The upper lending limit for borrowers with the Halifax, part of Lloyds Banking Group, has recently been increased from the current age of 75 to 80.

The changes mean that new borrowers will be able to take out a mortgage which runs until their 80th birthday. According to the Halifax, this change is a reflection of the changing needs of the population, as borrowers are now working for longer and live to an older age. The announcement has been welcomed by a spokesperson for London and Country broker, David Hollingworth, who said:

“The question has been, why aren’t more high street names able to help older borrowers?”

According to Hollingworth, a few of the smaller lenders have helped older borrowers for a while, but he added that

“still too few lenders have taken the chance to review their approach.”

Hollingworth believes that the changes made by the Halifax may encourage other lenders to consider their rules for older borrowers.

According to the Financial Conduct Authority, the number of consumers who are aged above 65 is expected to increase over the next five years by 1.11 million. Recent research conducted by the Halifax indicates that around one third of those currently aged between 20 and 45 years old expect to still be working after the age of retirement so they can pay their mortgage off.

Although affordability tests are now stricter than ever, a CeMAP qualified mortgage adviser will help borrowers to select a mortgage which is suitable for their requirements, which may include planning for retirement.



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