Halifax pushes mortgage age limit up to 80
One of the UK’s largest mortgage lenders is to increase the upper age limit for its mortgages from 75 to 80.
The lender, which is part of Edinburgh-based Lloyds Banking Group, said the move was made in response to the nation’s changing demographics.
The change means that that new mortgage applications will allow the term of a mortgage to run until the borrower’s 80th birthday.
Stephen Noakes, managing director for retail customer products at Halifax, said: “As demographics and working habits continue to change, we continually review our products and policies to ensure they reflect the evolving needs of our customers, including those who wish to continue working longer.”
An ageing population is one of the biggest features of Britain’s recent demographic change.
In the next five years, the number of consumers aged over 65 in the UK is expected to increase by 1.1 million, according to the Financial Conduct Authority.
This week a study by Halifax found 30 per cent of Scots aged between 20 and 45 believe they will have to keep working to clear off the loan after they have reached their standard retirement age.
Among those who are not yet on the property ladder, 39 per cent believe they will be working later in life to pay for their property and one in 12 expect to be paying their mortgage throughout their life.
In addition, major cities are also being heralded as “unaffordable blackspots” for first-time buyers, research from Post Office Money Mortgages found, meaning it may be impossible for some younger buyers to get onto the property ladder without longer terms.