Cambridge BS removes mortgage upper age limits.
The Cambridge Building Society has announced that it’s removing upper age limits on both its residential and buy to let deals.
The lender had a residential age limit in place of 75 years, and a buy to let limit of 85 years. It has decided to remove these limits in line with recommendations from the BSA, which in its interim report on Lending into Retirement (Nov 2015), said that all lenders need to review policy on lending into and during retirement.
With retirement age having increased, people are likely to be working up to the age of 70 years plus, so for a population that is working far longer, there is no real reason to restrict lending.
The lender advises that each application submitted is assessed on an individual basis, and it believes age should not be a barrier to getting a mortgage. If checks show a borrower can afford their repayments then age will be not a reason for refusal.
While the Cambridge is one of the first to improve its lending criteria for older borrowers, its hoped that it won’t be the last. In the UK we are now having to work longer, which is something lenders need to take account when assessing mortgage applications. If you are having to work into your 70s why shouldn’t your mortgage term extend that long too?
For a review of the market to find mortgage products for older borrowers call us at Deal Direct.
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