Over the past couple of weeks two banks have moved to increase the age limit on mortgage offers to 80 (Halifax) and 85 (Nationwide) years old.
Nationwide say the move is a response to demand from older customers who are “often asset-rich with significant equity in their home.”
As people increasingly find themselves working well in to their late 60s and often older, banks and building societies are having to adjust to allow for this.
Nationwide will now offer mortgages of up to £150,000 to older borrowers if they can prove they have sufficient pension to cover repayments.
The oldest possible age that a mortgage application will be accepted is 80 and this will only run for five years.
The offer will also only be available to those who wish to borrow 60% or less of the value of their home.
Announcing the news Henry Jordan, head of mortgages at Nationwide said: “We are taking a series of steps to meet a growing demand from customers to be able 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 towards developing a wider range of options for those looking to borrow into retirement.”
At Peter Ward Homes we have a wide range of locations and house types that will appeal to the older generation especially those looking to downsize and release equity for immediate use.
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