Loughborough Building Society has added a new option allowing borrowers taking mortgages into retirement to use the money to restore their savings pot.

The change will enable older borrowers to raise for a combination of purposes, which include replenishing their savings, home improvements, debt consolidation, giving money to family, buying a new car, paying care home fees, funding holidays or even putting down a deposit on a second home or buy-to-let property. 

It follows affordability changes in September 2024 when Loughborough increased potential income multiples to up to 4.5x income up to the applicant’s retirement age, compared to 3.5x income previously.

For applicants who are already aged 80 or over, the lender will continue to consider applications with a maximum income multiple of 3.5x for both single and joint applicants.

Head of intermediaries Ashley Pearson says: “As a Society, we continually strive to adapt and evolve our product offerings to better meet the needs of borrowers throughout their lending journey. 

“This latest enhancement to our lending in retirement criteria demonstrates our ongoing commitment to providing flexible and responsible solutions, empowering borrowers to make the most of their later years and achieve their financial goals with the support they deserve.”