From Tuesday 7 February, Santander will be extending the maximum Interest Only (IO) mortgage lending age from 65 to 70.
Cementing its commitment to older borrowers, this change is designed to offer IO customers greater choice in how they manage their mortgage repayments, whilst also supporting borrowers who want to take advantage of today’s low interest rate environment. The new policy applies to customers who choose to have any part of their mortgage as IO.
Miguel Sard, Managing Director of Mortgages, Santander UK said: “As a responsible lender, we work hard to support all areas of the market. We know that the lending landscape is changing, people are living longer and want access to borrowing into later life. By extending the age limit on our Interest Only mortgages, we hope to meet the needs of this growing customer group, offering them more choice in how they manage their mortgage.
“Interest Only may not be right for everyone, but we have seen appetite for Interest Only propositions grow in recent years and this change will support customers who choose this method of repayment.”
Throughout 2017 and beyond, Santander will continue to review all mortgage products and services and will remain focussed on supporting older borrowers.