Leeds Building Society has tightened its criteria when lending into retirement by reducing the maximum age a borrower can be at the end of their term from 80 to 75.
The lender’s mainstream mortgage range insists borrowers are no more than 75 years old when their term comes to an end.
However, until last week, it had a select range of products, called its “lending into retirement” range, which allowed a borrower to be up to 80 years old at the end of their mortgage term. This comes two years after Leeds reduced its maximum age from 85 to 80.
The pulled range includes a fees-assisted two-year fixed-rate product, an offset two-year discount at 1.50 per cent as well as the offset variable-rate mortgage.
Over the past 18 months, a number of lenders have reduced the maximum age they will allow a borrower to be at the end of the mortgage term, with Skipton and Newcastle Building Society reducing their maximum ages to 75.
West Brom Building Society reduced their maximum age further, dropping by 10 years to 70 in May.
The upcoming Mortgage Market Review places greater emphasis on affordability, with the lender insisting lenders check a borrower can afford their repayments in retirement.
A spokesman from Leeds Building Society says: “We are constantly reviewing our mortgage range to ensure that it is appropriate for the market.”