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.
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Notes to Editors
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its innovative products for retail customers and relationship banking model for UK SMEs. At 31 December 2016, the bank serves around 14 million active customers with c20,000 employees and operates through 841 branches (which includes 60 university branches) and 67 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, headquartered in Spain, with a meaningful market share in 10 core countries in Europe and the Americas. It is among the world’s top banks by market capitalization. The bank’s purpose is to help people and businesses prosper, in a way that is simple, personal and fair. Founded in 1857, Santander had EUR 1.52 trillion in managed funds, 125 million customers, 12,200 branches and 188,000 employees at the close of 2016. Santander made attributable profit of EUR 6,204 million in 2016, an increase of 4% compared to the previous year.
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