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Building societies to review mortgage age limits

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Mon 16 Nov 2015

Building societies to review mortgage age limits

 

The building society sector has committed to reviewing the maximum age limits for mortgage borrowers.

Most lenders restrict lending than runs over a certain age, with the maximum age limits currently standing at seventy five for the three largest building societies: Nationwide, Yorkshire and Coventry.

The Building Societies Association, whose members have been consulting with the Financial Conduct Authority, is releasing an interim report called 'Lending into Retirement' which makes a number of recommendations regarding how the industry should change.

The report also calls for suitable housing options for homeowners looking to downsize, regulation which encourages innovation and a cross-industry alliance with other bodies focusing on older consumers.

Dick Jenkins, chair of the BSA, said: "We have been working together as a sector to look at this issue and we are making some early recommendations for change.

"Some put the ball firmly in our court; others can only be delivered in partnership and a few may require regulatory change.

 

"The FCA has been involved in this preparatory work and I've been impressed with their open-minded and participatory approach.