The lender says the increased LTV is aimed at supporting borrowers seeking later life borrowing for purposes such as home improvements, debt consolidation, gifting, second home purchases, or even restarting homeownership following life events such as divorce.

In September 2024, the society updated its affordability approach by assessing income at 4.5x up to the applicant’s retirement age – an increase from the 3.5x income assessment – with no additional assessments required when the mortgage extends beyond the age of 80.

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

Loughborough Building Society head of intermediaries Ashley Pearson says: “As a Society, we recognise that many people in their later years may be seeking lower monthly mortgage repayments, often through longer terms or interest-only options, for a huge variety of reasons.

“Whether clients are consolidating debt, improving their home, or investing in a second property, increasing our maximum LTV cap to 70% on interest-only mortgages beyond the age of 80 provides our intermediary partners with a more comprehensive toolkit to support those later life borrowers with unique financial circumstances.”