The Nationwide Building Society’s new maximum age for borrowing of 85 will apply to both existing mortgage customers and those remortgaging from other lenders from mid-July.
The Society had already announced it was to allow existing Nationwide mortgage customers with retirement income the option of borrowing up to the age of 85, giving Nationwide the current highest age threshold of any high street lender.
Now the opportunity will be extended from launch to those borrowers remortgaging to Nationwide from other lenders and fitting the same criteria. The option will initially be made available from mid-July through mortgage intermediaries only, with the opportunity to apply directly through Nationwide planned to follow in August.
The option will be available across the product range, with a limit for any new borrowing of £150,000. Loan to value (LTV) will be limited to a maximum 60%. The maximum age at application is 80. The criteria will be the same for both existing Nationwide mortgage customers and those remortgaging from other lenders.
Henry Jordan, the Nationwide’s head of mortgages, said: “We are continuing to work towards increasing the ways to serve both new and existing customers looking to access the equity in their homes and borrow against it, supporting a range of needs in retirement. Our research has shown that older borrowers predominantly look to use their primary asset, their home, to give both them and their family more choice about their lifestyle options. This may include altering their homes or providing financial support to family, such as helping a relative to raise a deposit.
“This is another stage in Nationwide’s drive to widen choice for customers, but we recognise the risks that can accompany borrowing at an older age, so we are taking a balanced and prudent approach. Customers will need a stable and ongoing retirement income and we will reflect the additional risks that older borrowers may face by basing our assessment for joint borrowers on the proportion of income which will continue, should part of that joint income be lost during the mortgage term. Nationwide will continue to look to strengthen our support for older and retired customers.”