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.