Halifax said that for joint applications, the term must end before the oldest borrower's 80th birthday, and that proof of retirement income would be required for anyone in or at retirement age.
The change will apply from Monday on all applications to Halifax, Lloyds and Scottish Widows Bank.
A Halifax statement said:
"As demographics and working habits continue to change, we continually review our products and policies to ensure they reflect the evolving needs of our customers, including those who wish to continue working longer."
