Some 27 building societies, which hold £200bn of mortgage assets between them, will now lend up to 80, 85 or have no maximum age limit.
Well over half of the UK’s building societies now lend to borrowers up to or over the age of 80.
Speaking at the annual Building Societies Association conference this morning Paul Broadhead, head of mortgage policy at the BSA, said since November there has been a marked shift towards increased flexibility for older borrowers.
Some 27 building societies, which hold £200bn of mortgage assets between them, will now lend up to 80, 85 or have no maximum age limit.
And six societies will now lend up to age 80; 10 societies will lend up to 85 and a further 11 have no maximum age limit and manually underwrite each case.
Broadhead said: “This is coupled with a better understanding and careful management of the different risks that apply to this type of lending.
“I am pleased to see building societies leading the charge. We are seeing innovation in the approach to underwriting and the development of processes better tailored to the specific circumstances of older borrowers.
“With the proportion of older borrowers only set to rise, this challenge must be faced by all lenders.
“Constructive work is underway across the market and I have high hopes for the current FCA project on the Ageing Population.”
Jeremy Wood, chief executive of the Dudley Building Society which was one of the first to remove its age limits, said: “We took an early decision to remove upper age limits across our whole product range and train our mortgage underwriters to better understand the needs of older borrowers.
“The demand for what we offer is significant and so far we have seen no increase in credit risk.
“In fact, many cases have been markedly better. Our sector has a fantastic track record for innovation and for not closing the doors in difficult times.
“I passionately believe that we ought to be shouting louder about our successes in meeting the needs of 21st century borrowers.”
The BSA has launched a free consumer guide entitled: Can I get a mortgage at my age?
The guide covers key topics including the link between pension freedoms and borrowing into retirement; affordability; equity release options and lifetime mortgages.
Broadhead added: “The aim is to bust myths and provide consumers with clear information as well as sources for further guidance.”
