Specialist lender Together has started offering new mortgages which can end when applicants reach their 85th birthday.
As the shortest mortgage the lender offers is over a three-year term, this effectively means borrowers can be as old as 82 when they take out a new home loan.
Pete Ball (pictured), personal finance CEO at Together, said the maximum age increase would help borrowers such as those working later in life, people needing finance following a divorce or who are in their 50s and 60s and coming to the end of interest-only deals.
He said: “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.
“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.
“Together can take a common sense view of each application, looking at other sources of income – such as pensions and investments – as well as salaries of people working past pension age.
“It’s essential for older borrowers to take appropriate advice on lending decisions which take into account their financial position as a whole. But provided the customer can afford their repayments, we’ll consider lending to potential customers in their 60s, 70s or early 80s.”
