Abbey reduces the maximum age at end of mortgage term

Published: 29 July 2009 By MoneyhighStreet Staff Leave a Comment

Abbey, part of Santander, has changed the lending criteria on its mortgages by reducing the maximum age at the end of a mortgage term.

Abbey mortgagesAbbey has reduced the age from 85 down to 75 years as the maximum age possible at the end of a mortgage term.

With the increasing issues over adequate pension provision, this move by Abbey seems appropriate and a good way of reducing the risk of mortgages not being affordable as  people retire.

As Louise Cuming, head of mortgages at moneysupermarket.com, said ‘Homeowners should take advantage of current low mortgage rates and put some sorely needed extra equity into their homes and think about shortening the requested term if they can afford to.

By reducing repayments from 25 to 20 years, homeowners could save £32,000 in interest and in addition it means borrowers are more likely to be able to clear their mortgage before retirement.’

Will other mortgage lenders follow this move by Abbey?

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