Nationwide to raise mortgage age limit to 85 years
Nationwide has announced that they will be increasing that age limit for paying off a mortgage to 85 years old, as of July.
The changes will mean that somebody aged 65 years old could take out a 25-year mortgage, as long as they can demonstrate that they would be able to afford the repayments.
The building society has said that these changes are being introduced as a response to growing demand for mortgages from older people, who have faced difficulties in getting onto the property ladder.
Tougher mortgage checks were introduced as a result of the financial crisis, but this has made it particularly difficult for middle-aged people to get accepted for a mortgage.
This problem has been intensified recently, as rising house prices have meant that more people than ever are waiting until their thirties and forties to buy their first home.
Henry Jordan, head of mortgages at Nationwide said: "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."
Other mortgage lenders have also announced similar changes. For example, Halifax announced that as of Monday their age limit will increase from 75 to 80.
This has led to some industry analysts claiming that the moves could give the market a shake-up.
Tim McPhail, head of pensions at Hargreaves Lansdown suggested that some customers may never actually plan on paying off their mortgage at all. He said: "Why pay off the mortgage at all?
"As long as the value of the property is there to meet the liability in the future, why worry about paying it off when you are alive?"
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