Nationwide extends max lending age of 85 to remortgagors

Ryan Bembridge

June 16, 2016

thinking old

Nationwide Building Society will extend its maximum lending age of 85 to remortgagors in mid-July – including those switching from other lenders.

Last month the society announced that it would up its maximum lending age from 75 to 85 in July – giving it the highest age threshold of any high street lender.

The higher threshold will be limited to products at 60% loan-to-value and loans under £150,000, with the maximum application age being 80.

Equity release market experiences fastest growth in a decade

Henry Jordan, Nationwide head of mortgages, said: “Our research has shown that older borrowers predominantly look to use their primary asset, their home, to give both them and their family more choice about their lifestyle options. This may include altering their homes or providing financial support to family, such as helping a relative to raise a deposit.

“This is another stage in Nationwide’s drive to widen choice for customers, but we recognise the risks that can accompany borrowing at an older age, so we are taking a balanced and prudent approach.

“Customers will need a stable and ongoing retirement income and we will reflect the additional risks that older borrowers may face by basing our assessment for joint borrowers on the proportion of income which will continue, should part of that joint income be lost during the mortgage term. Nationwide will continue to look to strengthen our support for older and retired customers.”