The Building Society sector has committed to review its maximum age limits for mortgage borrowers, as one way to support those needing mortgage finance into, and during retirement.
The UK has 11.6 million people over the age of 65. By 2034 it is estimated that around a quarter of the population will be over 65. As a result of this ageing population, with figures from the social research charity Nesta indicating that the life expectancy of the UK’s population increases by five hours each day, there is a corresponding need to fund mortgage borrowing into retirement. This is also compounded by the fact that consumers are tending to buy mortgage products later, and opt for longer repayment terms.
Reviewing the maximum age limits for mortgage borrowers is one of nine recommendations contained in an interim report entitled 'Lending into Retirement', launched on 12 November 2015 at the Building Societies Association’s Annual Lunch. Paul Broadhead, the Building Societies Association’s Head of Mortgage Policy stated that “it is natural for the building society sector to kick-start and lead this work. We already tend to have a more flexible approach to lending with higher and sometimes no age limits and a willingness to assess applications considering an individual’s circumstances.”