As they increase their age cap to 85
Demographics are changing in respect to how long people live and work, and subsequently mortgage lenders are listening. Nationwide is the latest leading mortgage lender who has announced a rise in their age cap to support the needs of older borrowers, who typically are asset rich but many of whom choose to keep some borrowing against their property.
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Nationwide increase their age cap from 75 to 85
On the same day that Halifax announced to increase their age cap, Nationwide, the largest building society in Britain, also announced they would be raising their maximum age for mortgages to 85, up 10 years from their current limit of 75. This change would impact from July 2016.
This is to meet growing demands for customers to borrow into later life.
The increased age cap will be available on Nationwide’s standard mortgage products, with further terms that the mortgage must be up to a 60% loan-to-value and a maximum of £150,000 loan size.
“We are taking a series of steps to meet a growing demand from customers to be able to borrow in later life”. Henry Jordan, Head of mortgages
Lenders helping older borrowers
Older borrowers are often asset rich with significant levels of equity in their home. Lenders have been encouraged to do more to help this section of the market, by loosening their rules regarding age limits on mortgage lending.
Typically, older borrowers just want flexibility to borrow against their assets.
With rising property prices and changes in working culture, a recent Halifax survey showed that one in three under 45 year olds expect to work after the state retirement age, in order to pay off their mortgage.
The Financial Conduct Authority also expect consumers over age 65 to rise over the next 5 years, to over 1.1 million.
To this effect, lenders need to take note of the growing population and ensure they can cater for them.
Retired or approaching retirement? Speak with Chris
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