17:43 Monday 9th May 2016
BBC Radio Cambridgeshire
CHRIS MANN: At what age are you too old to be in debt? One of the UK’s biggest lenders says it will lend mortgages to people until they are would you believe eighty five. But is that sensible, and what difficulties might it create? Kevin Peachey is the BBC’s Personal Finance Reporter and he joined me a little earlier.
KEVIN PEACHEY: Well lenders general wanted people to pay off their mortgages by retirement, so they ensure that all of those repayments were made while people had a working wage. But now Nationwide, one of the biggest lenders in the country, says that from July it will allow some existing customers to have their mortgage until they’re eighty five. So that means a sixty year old taking out a twenty five year mortgage. And this move comes after their competitor Halifax raised its age limit from seventy five to eighty. So people in their eighties will still be paying off mortgages.
CHRIS MANN: I suppose it all reflects the changing demographic, and quite simply people are living longer anyway. Can everyone get such a loan?
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