The move, which will see the limit raised to 70 years across its range and allow landlords up to the age of 80 to access finance, is in recognition of changing market dynamics.
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Matt Grayson, head of PR at BM Solutions, commented: “With people living and working longer, both out of necessity and because they may want to, many more people are looking past the traditional retirement age. We feel it’s a sensible move which brings us into line with others in the market which lend up to 70.”
Grayson said the lender would be bringing in the move in the late Summer.
Graham Swann of Mortgage Innovations, welcomed the announcement. “With house prices going up and the age of applicants increasing, we’re finding it hard to get people in their later years onto a repayment deal. Most people accept they’ll be working until they are 70 now so this is good news.”
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With the FSA hinting that it will be placing greater focus on lending into old age, many lenders may have to consider whether their policies allow for an aging society.
Linda Will, managing director of Accord Mortgages, commented: “With buy-to-let, the age limit is academic as they are running a business. As long as there is someone to service the debt, the age is irrelevant. On a normal mortgage, you can judge what income a person of 65 has. The challenge is for borrowers who are 45 years, as it is difficult to access what their income will be by the time they reach 65.”
