Previously earnings could only be used up to the state retirement age, but borrowers now have the option of declaring an intention to work beyond the pension age up to 70.
Halifax has relaxed its lending into retirement criteria so applicants can use earned income up to the age of 70 to calculate the mortgage amount.
Previously earnings could only be used up to the state retirement age, but borrowers now have the option of declaring an intention to work beyond the pension age up to 70.
The maximum age at the end of the term is still 75 years, with the change taking effect from Monday.
David Hollingworth, associate director of communications at London & Country mortgages, said: “This is a welcome change although nothing too radical and brings them into line with the approach that others already employ.
“What it fails to do is up the maximum age and some can’t understand why you can’t borrow beyond that. The smaller building societies have typically dealt with those borrowers.”
“Hopefully this is the start of big lenders providing a more flexible approach.”
Around a fifth of the UK population work beyond the state pension age in some capacity to 70.
Ian Wilson, head of Halifax Intermediaries, said: “These changes in our lending policy will help us to meet the needs of more customers who choose to work longer.
“We continually monitor and update our products and policies to ensure they reflect the changing needs of our customers, and we’ll continue to support people who wish to continue working longer.”
