The Nationwide Building Society is to increase its maximum age for mortgage maturity from 75 to 85 in July.
Last week the Halifax raised its maximum age to 80.
This will give Nationwide the highest age threshold of any high street lender.
The change will enable existing customers with retirement income to borrow up to the age of 80, with a maximum age at maturity of 85. A range of mortgage borrowing needs will be supported, including house purchase and further advances.
The option will be available on all standard Nationwide mortgage products up to 60% loan-to-value (LTV) and a maximum loan size of £150,000.
In February, Nationwide simplified its approach to assessing retirement income, and it now use the customer’s anticipated retirement age rather than the state pension age, up to a maximum age of 70.
Henry Jordan, the Nationwide’s head of mortgages, said: “We are taking a series of steps to meet a growing demand from customers to be able to borrow in later life. These customers are often asset rich, with significant equity in their home, and they wish to have the flexibility to borrow against it.
“Access to the mainstream market has been a challenge for older customers, resulting in their needs going unfulfilled. This measure helps to address these needs in a prudent, controlled manner. Nationwide is committed to providing a range of options for all customers and this will be the first step toward developing a wider range of options for those looking to borrow into retirement.”
