Lloyds Banking Group PLC (LSE:LLOY)-owned Halifax has lowered the maximum age limit for its mortgage deals to 70 as it looks to avoid offering risky loans.
Previously, people up to the age of 75 could apply for mortgages with the lender, with the reduction in age set to force many into shorter-term deals with higher interest rates.
“These changes have been made as part of a regular review of our lending criteria and will ensure we can continue to lend responsibly to a broad range of customers,” a spokesman said.
“For all other applications, we will continue to use a maximum working age at application of 75.”
Halifax had raised the age limit to 75 just last summer, with borrowers typically allowed to take out loans for as long as they work, but having to provide evidence of the likes of pensions to cover these if retired.
“Halifax appears to be tightening the screws on the very borrowers who need them the most,” Darryl Dhoffer, adviser at The Mortgage Expert, said.
“High mortgage rates and shorter terms are a recipe for disaster, pushing even more borrowers into debt and hardship.”