Halifax has announced that, from tomorrow, it will increase the maximum working age (MWA) using earned income from 70 to 75 years of age.
The bank says this will support customers who are willing and able to continue in their current occupation beyond 70.
The increase in MWA is available to both employed and self-employed customers.
For those requesting a mortgage term that passes a working age of 70, Halifax will require a new customer working age form to be completed.
This form asks the customer to confirm they have considered the implications of the term chosen and that they believe they can continue to work until the age indicated.
It will be available from tomorrow (Tuesday August 1) under the ‘useful forms’ section of the website.
The increase in MWA is only available on capital and interest repayment mortgages. If any element of the mortgage is on interest-only the MWA remains as 70.
Where lending extends beyond the lower of the customer’s anticipated retirement age or a MWA of 75, affordability will be based on future retirement income.
The maximum age at the end of the mortgage term remains as 80 years for all lending.
The increase in MWA will also apply to existing customers increasing their term as part of a further advance or product transfer application.
The new MWA will only apply to applications started from tomorrow.
