NatWest IS increases max age and term

ended 19. April 2022

NatWest Intermediary Solutions today announced it is increasing both its maximum term and age with immediate effect. Customers applying via an intermediary will now be able to apply for a residential mortgage up to age 75 and with a term of up to 40 years. We asked brokers for their thoughts.


5 responses from the Newspage community

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"Mortgage lender flexibility around maximum term and age is one way they can help borrowers with affordability during this period of uncertainty as the economic cycles shift. After all, with the cost of living crisis rampaging out of control, an ageing population and lack of security regarding future pension benefits, most of us will be working until at least age 75 anyway."
Star Quote
"Lenders know affordability is becoming a huge issue and can see the writing on the wall. House prices are at record highs, but the cost of living crisis is really starting to hit household budgets. I think we'll see many more lenders extending their maximum lending age with borrowing not based on retirement income. The FCA is also under pressure from mortgage providers to weaken the affordability stress test criteria, which stipulates all lenders must assess at 3% above their SVR rate. The housing market is a bubble waiting to burst, and lenders are doing whatever they can to prevent it."
"It's great to see NatWest and Skipton Building Society come in line with the 40-year term maximum alongside their high street counterparts such as Halifax, Santander, HSBC, Barclays, Nationwide and the 40 plus other residential lenders who will go to 40 years. It's also great to see NatWest increase their maximum age to 75, although Skipton already allowed this. This means there are now over 40 residential lenders where you can have a 40-year term up to age 75. Rather than the cost of living crisis, it seems this is more about coming in line with most mainstream lenders that allow this policy. It offers options to people who may still be sitting on interest-only mortgages, giving them a much-needed resolution to what can be a sticky situation if strategies to repay interest-only loans haven't gone to plan."
"Quite a few lenders will allow a 40-year repayment term and are happy for borrowers to continue working to age 75, so this is more NatWest coming into line with others in the market as opposed to breaking new ground. That being said, it is very welcome, as NatWest are an extremely useful lender and their inability to lend over age 70 previously had caused issues and I have no doubt they will be receiving more applications due to these changes."
"It's brilliant to see NatWest putting the consumer at the forefront of their policy changes. Other lenders already offer a 40-year term so this brings Natwest in line with this. The more available mortgage options and choice out there for the client, the better. Many traditional lenders are recognising that many people don't stop working when they reach state retirement age. Borrowers are living and working for longer, so a mortgage term up to age 75 from NatWest is very welcome."