Nationwide Building Society is extending the maximum age for borrowing to 85 for borrowers who are already in retirement and receiving a pension income.
Previously the maximum age for all borrowers was 75. The lower age threshold still applies to those not currently in retirement.
The higher age threshold will apply to both existing mortgage customers and those remortgaging from other lender, providing them with the opportunity to take equity out of their homes or transfer onto a new rate.
This option will initially only be available through mortgage intermediaries, with customers offered the option to apply directly to Nationwide later in the year.
Nationwide says the move gives it the current highest age threshold of any major high street lender.
It will be available across the mortgage product range, with a limit for any new borrowing of £150,000, which in the case of existing Nationwide customers is in addition to any mortgage balance being ported. Loan to value (LTV) will be up to a maximum 60 per cent, and customers must be under 80 years of age to apply.
Only retirement income can be used when calculating affordability. It is not available in conjunction with affordable housing schemes and cannot be used for debt consolidation purposes.
Nationwide head of mortgages Henry Jordan says: “Nationwide is launching the next stage of an ongoing plan to increase the ways in which both new and existing customers can access the equity in their homes and borrow against it to support a range of retirement needs.
“We will continue to look to strengthen our support for older and retired customers and to help them access the appropriate products for their lifestyle choices.”
For joint mortgage applications, when calculating the maximum affordable amount Nationwide will only use 50 per cent of each applicant’s pension income.
Both applicant’s pensions must include the provision to continue to pay at least 50 per cent to the other applicant in the event of death, and proof of this dependant’s benefit clause will be requested as part of the application.