Abbey lowers maximum age limit on mortgages

29 July 2009

The move comes after the lender reviewed its risk policy and says the new limit brings it in line with other lenders.

A spokeswoman for Abbey, says: “As a responsible lender, we are committed to ensuring the affordability of mortgages for all our borrowers and believe this move is prudent for mortgages ending beyond the normal retirement age.

“This change aligns our lending policy across our businesses and brings us into line with competitors.”

Louise Cuming, head of mortgages at moneysupermarket.com says she expects other mortgage lenders to follow in Abbey’s footsteps.

She says: “Taking a more conservative approach to mortgages into retirement is a sensible move from Abbey, and one which we expect other providers to follow as lenders move to ensure the long term affordability of mortgage debts.

"These days first-time buyers are older when they take out their first mortgage, with a typical first-time buyer being around 33. If they stay in the same house, they'll have reached 58 by the time they finish their 25 year mortgage term.

“But if they move home a couple of times taking the mortgage back to a 25 year term each time, quite soon the end will be nearer 70.”