More societies increase limit
Nationwide extends lending age limit to 85
Britain’s biggest building society is increasing the maximum lending age by 10 years to 85 from July, giving it the highest age cap of all of the major high street lenders.
Existing customers with retirement income will be able to borrow up to age 80 with the loan having to be repaid by age 85.
The option will be available on all standard Nationwide products to 60 per cent loan-to-value and a maximum loan size of £150,000.
Last week, Halifax increased its maximum lending age from 75 to 80.
Nationwide head of mortgages Henry Jordan said: “We are taking a series of steps to meet a growing demand from customers to be able to borrow in later life. These customers are often asset rich, with significant equity in their home, and they wish to have the flexibility to borrow against it.
“Access to the mainstream market has been a challenge for older customers, resulting in their needs going unfulfilled. This measure helps to address these needs in a prudent, controlled manner. Nationwide is committed to providing a range of options for all customers and this will be the first step toward developing a wider range of options for those looking to borrow into retirement.”
The Building Societies Association said half of its 44 members have maximum age limits of at least 80, with 10 of them having no age caps. Six have increased their age caps in the past six months.
However, the banks are sticking to lower age limits. HSBC, Santander and Virgin insist that the borrower repays their loan by the time they are 75. Barclays and Royal Bank of Scotland have a maximum age limit of 70.
- Nationwide is cutting the interest rate on savings accounts. Interest on an instant ISA Saver account will fall from 1.4% to 1% from 1 June.