Loughborough Building Society has enhanced its lending in retirement proposition by moving to assess income at 4.5 times up to the applicant’s retirement age, an increase from its previous 3.5 times income assessment.
As part of this change, the lender will no longer require an additional assessment when the applicant reaches the age of 80. If the mortgage is deemed affordable based on a 4.5 times pension income ratio at the time of retirement, and it extends beyond the age of 80, the applicant will remain eligible for the society’s lending in retirement products.
For applicants already aged 80 or over, The Loughborough will continue to consider applications with a maximum income multiple of 3.5 times for both single and joint applicants.
Loughborough’s head of intermediaries Ashley Pearson commented: “The later life lending sector is rapidly evolving as the lifestyles and financial needs of those aged 50 and over change, at pace. As a lender who remains committed to delivering tailored financial solutions that meet the diverse range of borrowing needs in retirement, we recognise the importance of continuously adapting and developing our offerings.”
He added: “This positive criteria change will enable our intermediary partners to provide a more personalised and accommodating lending experience for later life borrowers, and we anticipate this adjustment will be well-received across the market.”
