One of the UK’s largest mortgage lenders has decreased its higher age restrict in a blow for home consumers .
Halifax is imposing a brand new 70-year age restrict on the phrases of its home loans for some debtors.
A most working age of 70 will apply to remortgage purposes and a few buy and remortgage purposes due to the extent of credit score rating achieved and general credit score profile.
Commenting on the transfer, Craig Fish, director at Lodestone Mortgages and Protection, advised the Newspage company: “What a slap within the face to these in want from the Halifax. When most lenders are adjusting their standards to assist extra individuals, Halifax are adjusting theirs to assist much less, and extra importantly to assist much less of those that want it essentially the most.
“This is not what you would expect from such a large lender, who are already not in brokers’ good books due to their secretive rate setting policy when it comes to helping existing customers. This is going to tarnish the Halifax name even further. They are no longer the popular name on the high street they used to be.”
Halifax had solely raised the restrict final summer time.
Adrian Lowery, monetary analyst at wealth supervisor Evelyn Partners, stated: “Beset by a lot of monetary challenges together with excessive home costs, elevated mortgage charges, the final cost of dwelling, and appearing because the financial institution of Mum and Dad (probably additionally caring for elderly mother and father besides), the leeway to increase a mortgage previous 70 years has been adopted as a coping mechanism.
“While many such debtors will probably be assured that they will both shorten the mortgage at a later date, or proceed repayments past 70 – both as a result of they are going to hold working or have a great pension in place, or each – the Halifax would in all probability argue that they should have accountable standards in place.
“There’s no doubt that as property prices remain very high and as we are very unlikely to return to the super-low mortgage rates enjoyed until a couple of years ago, many households will have to revise either their homebuying demands, their cash-flow expectations or possibly even the date and style of their retirement.”
