Family Building Society has raised the maximum age for borrowers at the end of the term to 95, for those taking out repayment or combined repayment and interest-only owner occupier mortgages.
The maximum term is now set by the age of the oldest borrower at the end of the term. This now means that a 60 year old could have a 35-year term, a 70 year old a 25-year term and an 80 year old a 15-year term.
Keith Barber (pictured), director of business development, Family Building Society, said “Changing socio-economics demand new strategies from lenders that address the needs of borrowers across the age range.
“We have a strong track record over many years of meeting the needs of older borrowers, part of the market that is particularly poorly served by many other lenders.
“Having some or all of your mortgage on a repayment basis, rather than interest only, means that the outstanding debt will be reducing over time and extending the term over which this can be done makes the monthly payment more affordable.
“This will appeal to many retired borrowers who have found that, for whatever reason, they have not been able to repay their mortgage as quickly as they would have liked.
“Being able to reduce your mortgage debt during retirement gives you more options in future. This may mean that there is scope later for additional borrowing to address care needs, or simply more money to pass on to your family as an inheritance, for example.”