Together increases maximum lending age to 85

Specialist lender Together has increased its maximum age to 85, meaning those aged up to 82 can take out a loan from the provider.

The lender currently offers a three-year term mortgage, effectively meaning that borrowers can be as old as 82 when they take out a new home loan.

The move comes after mortgage experts reported broker demand is on the rise for new deals for their later life customers.

Together personal finance CEO Pete Ball claimed the increase in maximum age will support borrowers such as those working in later life, people needing finance following a divorce or who are in their 50s and 60s and coming to the end of interest-only deals.

“We’re increasing the maximum age at the end of the loan in response to what we see as a growing demand and more lenders need to follow suit,” he said. “The UK has an ageing population who have healthier lifestyles and are working longer but many are surprised and frustrated by how few options are open to them when it comes to securing a mortgage.”

Many mainstream lenders cut back on the number of mortgages they offered to borrowers over the state pension age of 65 after 2008’s financial crisis. This meant that those with enough retirement income to meet repayments would still be declined if they applied for a mortgage.

However, the market has evolved in recent years, with data provider Moneyfacts identifying almost 1,100 mortgage products on the market that allowed a customer to take out a loan past their 80th birthday.

In support of this, Twenty7Tec head of lender relationships Melanie Spencer highlighted the number of searches by brokers whose clients were aged between 55 and 85 had soared by 22.7 per cent in the past 12 months alone.

Coreco managing director Andrew Montlake said: “For those that have a provable income in later life or pension income that demonstrates affordability, there is no reason why they should not be able to extend their borrowing capacity later in life. Some do this because they want to use equity to invest, purchase rental investments or various other uses.

Montlake pointed towards equity release, noting that it was becoming more common “and often necessary” for parents and grandparents to use their equity to help relatives with a deposit in order to take their first steps on the property ladder.

“Whatever the reason, it is important for lenders to cater to the changing needs of borrowers, and lending past traditional age limits will become more and more common.”

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