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Number of products with higher max age increasing: Moneyfacts

Moneyfacts data reveals that the number of mortgage products permitted to end when borrowers are aged between 80 and 84 years has increased from zero in 2014 to 1,078.

Likewise, five years ago, there were zero products that offered a no maximum age option – but this now numbers 602.

On the upper end of the age scale, there were 33 products that allowed a borrower to be 85 or over at the end of the product term whereas today there are 263.

In the 75 – 79 age bracket there has been barely any movement, however, going from 1,645 products in 2014 to 1,822 at last count, and in the 65 – 69 bracket, available products number 923 and 18, respectively.

The data company explains that following the financial crisis, mortgage providers became more restrictive with lending, but that this is now changing.

The removal of the Default Retirement Age in 2011 has meant that the official pension age and retirement age are not tied, allowing employees to work beyond the pension age for reasons other than financial ones, Moneyfacts adds.

Finance expert Darren Cooks comments: “Over the past five years, mortgage providers have become far more accommodating to borrowers who wish or may have no alternative, but to extend their mortgage term well past the official pension age.

“The softening of the maximum mortgage end age appears to be widespread: In February 2014, 52 per cent of all available mortgages were permitted to mature when the borrower was 75 years old and over, whereas today, this figure stands at 72 per cent.

“Lenders are clearly reacting to this, even at the highest tier, with those who will be aged 85 or over at the end of a mortgage now having eight times as many deals to choose from than they did five years ago, rising from 33 products in February 2014, to 263 this month.”

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