Halifax has increased its upper age limit for mortgage lending to 80, effective from Monday, prompting a similar motion in major lenders. The change means that for new mortgage applications, the term will be allowed to run until the borrowers' 80th birthday. The move was a response to the changing demographics, with people living and working for longer.
The decision was welcomed as a positive step. David Hollingworth, spokesman for broker London and Country, said, “The question has been, why aren't more high street names able to help older borrowers?” He said that smaller building societies have been flexible when it comes to older borrowers for a while, but “still too few lenders have taken the chance to review their approach”. He said the move by a major lender may “open the door” for other lenders to look at their rules when it comes to older borrowers.
Stephen Noakes, managing director for retail customer products at Halifax, said, “As demographics and working habits continue to change, we continually review our products and policies to ensure they reflect the evolving needs of our customers, including those who wish to continue working longer.”
