Nationwide raises maximum mortgage age to 85

Building society Nationwide raised its maximum age limit for mortgages to 85 from 75 on Monday, making it the oldest limit of any of the major lenders - though it wasn’t about to take any major risks in lending to the retired.

The move beat that from Halifax, which raised its age limit to 80 last week.

Nationwide said it will lend up to £150,000 to elderly borrowers, so long as their pension allows them to keep up the repayments.

The oldest customers it will take on are 80, and they will only get five year mortgages - meaning nobody over 85 will be owing Nationwide on their properties.

Older borrowers will only be able to mortgage up to 60% of the value of their home.

“We are taking a series of steps to meet a growing demand from customers to be able to borrow in later life,” said Nationwide head of mortgages Henry Jordan.

“These customers are often asset rich, with significant equity in their home, and they wish to have the flexibility to borrow against it.”

The move from Nationwide came a week after Barclays reintroduced 100% mortgages with the caveat of a term deposit, and as house price growth in the UK continued to slow.