Halifax Increases Maximum Working Age For Mortgages To 75

I have repeatedly asked my Halifax BDM when this was going to happen and they would fall in line with the rest of the market and was always told the same, namely that they didn't need to, they were already the largest lender in UK and didn't need the extra business. Clearly, something has changed within Halifax to make this strategic change. Is it a lack of business in the market, as we have seen a drop in purchaser activity, or is it the right thing to do to give customers those options to take the mortgage for longer and lower monthy costs? Whatever, the reason it doesn't matter as it is great news and long overdue and potentially those extra five years are going to be a massive help to customers in what is a challenging time financially for a lot of people.

This is bringing Halifax in line with many of their competitors with the likes of NatWest changing these criteria last year and HSBC, Nationwide and Santander amongst others having it for years. Extending a mortgage term past state retirement is not a decision that should be taken lightly but is what many are doing at the moment to make their monthly payments more affordable, hopefully as a temporary measure and the mortgage can be paid down quicker with overpayment or a remortgage at a later date.

This is a good move from Halifax, and brings them into line with the majority of other high-street lenders. Known in the industry as a 'no fuss'-type lender, this has been one element of their criteria that we brokers have wanted for a while. It won't see a surge of new applications, but having the choice to go beyond 70 is something that a lot of people want to consider. I also like the fact they want the client to sign a form to evidence they are aware of the risks of doing so. A wise move in our current 'compensation culture'.

This is fantastic news. I think it was only a matter of time before Halifax increased its maximum age to 75. There are a number of big banks already doing this. We are already seeing a vast amount of homeowners increasing their mortgage terms to help cushion the blow with substantially higher mortgage payments so these new criteria will certainly help this. The increased term does come with some risks, as ultimately you will be paying more interest over your mortgage term and if you are close to retirement you will need a solid plan on how you are going to work and pay your mortgage until the age of 75.

This is a fantastic move from Halifax which will give our customers more options. There are currently some smaller lenders who allow this, however the rates are sometimes higher and/or criteria and underwriting can be tougher. With customers taking mortgages longer due to changing working habits, the increased cost of living or just personal preference, this move will only serve to assist mortgage borrowers and drive competition in the market. We would welcome more mainstream and high-street lenders moving into this space.

This is great news and is often a concern to us with applicants as the UK general public are all clear in their mind that they will sadly be working until at least 75 now and so why should the largest mortgage lender in the UK have been restricting their repayment terms until age 70? The large majority of UK lenders now have good flexibility in acceptable repayment ages and Halifax has now slotted into this.

This isn't quite as scary as it first sounds. The retirement age of 65, for men at least, was set back in the 1940s when the average life expectancy was under 70, so retirement would last around 5 years. Life expectancy is now around 80, but with the retirement age only edging up to 68, that leaves us with 12 years of retirement to fund. Many people are simply not saving enough to fund a retirement of that length and so the only option is to remain in some form of employment. This could be part-time to supplement their pension income rather than full-time, but it is more and more likely that people will need to have an earned income later in life; so Halifax, as with many other lenders, is only amending their criteria in line with how their customers working lives are evolving.

This is in line with a lot of lenders and is sensible as a significant percentage of people these days are working up to age 75. This doesn't stop people from overpaying and paying off the mortgage before age 75 if they are able but it can help reduce the monthly cost with a longer term.

This long-awaited move by one of the biggest high street lenders in the market will be a big relief for many consumers whose monthly mortgage payments up to the previous maximum age of 70 were simply not affordable. It also brings Halifax in line with many of the other big six lenders and will result in a small increase to their already substantial market share. More and more borrowers will look to take advantage of this change of criteria and extend their mortgage terms, in order to reduce their monthly payments to a more affordable and sustainable level. Increasing your mortgage term is not without its risks however, it of course means retiring much later in life, which may not be feasible for everyone, depending on their occupation type, and it also means paying a lot more interest, too, by taking the mortgage over a longer term.

Halifax is a big company that's always stood out a bit. It's nice to see one of the top mortgage lenders in the UK making a big move like this. By changing just one rule about who they lend to, they could attract a lot more customers. But, for people thinking about getting a mortgage that extends past retirement age, it's really important to think about whether they can keep paying it until they're 75. When you're in your 30s or 40s, working until 75 might seem doable, but people who are actually that age often find it's not that simple.