Santander is increasing its maximum interest only mortgage lending age from 65 to 70.
The new age limit will be introduced from Tuesday 7 February and the lender says the motivation for the change is to provide interest only customers with “greater choice in how they manage their mortgage repayments, whilst also supporting borrowers who want to take advantage of today’s low interest rate environment.”
Santander managing director of mortgages Miguel Sard says: “We know that the lending landscape is changing, people are living longer and want access to borrowing into later life.
“By extending the age limit on our Interest Only mortgages, we hope to meet the needs of this growing customer group, offering them more choice in how they manage their mortgage.”
He says appetite for interest only propositions has grown in recent years.
The new policy applies to customers who choose to have any part of their mortgage as interest only.