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Age limit for home loans raised by Nationwide.

BANKING AND CREDIT NEWS-May 10, 2016-Age limit for home loans raised by Nationwide


British building society Nationwide is increasing its age limit for people paying off mortgages to 85, in what is seen to be the most recent sign on the impact of increasing house prices on buyers, the BBC reported on Monday.

The increase of ten years to its age limit for people paying off mortgages was said to be due to "growing demand", according to the building society, with the limit coming into effect from July. With the changes, a 60 year old would be able to take out a 25 year mortgage, as long as they are able to prove they can afford the repayments.

Nationwide's increase in age limit for mortgages follows British based financial services provider Halifax increasing its age limit for mortgages to 80 from 75 from Monday.

The industry has been called upon to do more to help older buyers after tougher mortgages checks, following the financial crisis, made it harder for middle-aged people to get a home loan.

Applying to exisiting customers for all its standard mortgages, Nationwide said that under the new age extension the maximum loan size would be GBP150,000 and could be no larger than 60% of the property value.

Other mortgage lenders offer a rage of differing cut off ages for older borrowers, with Santander cutting off at 75; RBS' upper age limit being 70; at Barclays the upper age limit is 70 or the customer's retirement date, whichever is sooner; and HSBC saying it reviews applications of those aged over 75 on "a case by case basis".

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Publication:M2 Banking & Credit News (BCN)
Date:May 10, 2016
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