The decision to impose this limit is based on the credit score achieved and the overall credit profile of the borrowers
Halifax has recently implemented a new policy that sets a maximum age limit of 70 for certain borrowers seeking home loans. This age restriction will be applicable to both remortgage applications and select purchase and remortgage applications.
The decision to impose this limit is based on the credit score achieved and the overall credit profile of the borrowers.
Commenting on the move, Craig Fish, director at Lodestone Mortgages and Protection, told the Newspage agency: What a slap in the face to those in need from the Halifax. When most lenders are adjusting their criteria to help more people, Halifax are adjusting theirs to help less, and more importantly to help less of those who need it the most.
This is not what you would expect from such a big lender, who are already not in brokers’ good books because of 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.
It is worth noting that Halifax had actually increased the age limit just last summer.
Adrian Lowery, financial analyst at wealth manager Evelyn Partners, comments: Beset by a number of financial challenges including high house prices, higher mortgage rates, the general cost of living, and acting as the bank of Mum and Dad (possibly also caring for elderly parents to boot), the leeway to extend a loan past 70 years has been adopted as a coping mechanism.
He adds: While many such borrowers will be confident that they can either shorten the loan at a later date, or continue repayments beyond 70 – either because they will keep working or have a good pension in place, or both – the Halifax would probably argue that they need to have responsible criteria in place.