Santander is extending the maximum interest-only mortgage lending age from 65 to 70 from 7 February.
The move is designed to offer interest-only customers greater choice in how they manage their mortgage repayments, whilst also supporting borrowers who want to take advantage of the current low interest rate environment.
The new policy applies to customers who choose to have any part of their mortgage as interest-only.
Miguel Sard, managing director of mortgages, Santander UK, said: “As a responsible lender, we work hard to support all areas of the market. 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.
“Interest-only may not be right for everyone, but we have seen appetite for interest-only propositions grow in recent years and this change will support customers who choose this method of repayment.”
Santander says it will continue to review all mortgage products and services throughout the year and will remain focussed on supporting older borrowers.