Britain’s largest mutual society, Nationwide, has made the headlines for seeming to buck the trend when it comes to lending duration.
The organisation is now agreeing to approve borrowing for buy-to-let purposes that will run until the applicant is 105 years of age.
It has emerged as a variance in the normally stringent property lending market. After the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review in April 2014, additional regulation was enforced by the Financial Conduct Authority (FCA). The increased regulation means that a more detailed analysis of a potential borrower’s income and expenditure must be completed before a decision is made in regards to lending.
Lenders have become stricter in their mortgage approval process, as they all want to avoid any penalty for rule infringement, declining mortgages for borrowers in their 50s and 60s. Even Nationwide’s lending policy states that residential borrowing must be repaid by the age of 75 years.
Some are now wondering why the mutual society is prepared to allow borrowing to be repaid up to 105, when customers purchase a property that will be let out as opposed to being used as a family home.
This move follows the recent changes made to our pension system, which saw anyone over the age of 55 able to access their pension cash. To be able to profit from the changes, lenders have had to increase the age cap for potential landlords.
Having finished your CeMAP training and passed the end exam, you will be a qualified mortgage professional who is able to advise on the most suitable package within the product range that your employer offers.