Age limit for mortgages relaxed

May 23rd 2016
By: Mary.Wilkins
Age limit for mortgages relaxed

Great news for older buyers as Nationwide announces raising home loan age limit to 85 years just as Halifax raises their mortgage borrowing limit to 80.  The move by these two lenders means that a 55 year old customer can now take out a 25 year loan and repay the loan prior to his or her 80th birthday.  Workers are no longer compelled to retire at the age of 65 and the state pension age will rise to 67 for both men and women between 2026 and 2028.  The good news is that lenders are responding to this increase in demand and are looking to help older buyers after tougher mortgage checks which were introduced post-financial crisis made it significantly harder for middle-aged people get a home loan.

It appears to be signalling growing confidence of risk adverse high street lenders who traditionally have been unwilling to grant loans to retirees.  This could well mean this new flexibility being shown by lenders will boost the number of pensioners increasingly borrowing to pass on deposits to their siblings.  This could well have a knock on effect on house prices bringing more first-time buyers into the market place.