Notable changes include increasing the maximum loan-to-value (LTV) on interest-only mortgages from 65% to 70%, and upping the maximum debt consolidation limit to £35,000, with a maximum LTV of 75%

The loan-to-income (LTI) ratio has been increased from 3.5 to 4 times income for later-life/lending in and into retirement cases, and the lender will now consider up to two minor defaults up to a maximum value of £250, cleared for over 12 months.

It has also raised the maximum LTV for RIO cases to 60% from 55% and it will allow downsizing as a repayment option for interest-only later-life cases.

Graham Carter, head of lending at Beverley Building Society, said: “These are the first of what we expect to be a series of changes we will make to help us ensure we remain relevant by providing loans which best cater for both existing and new markets.

“It’s a demonstration of our commitment to maintaining our excellent track record of catering particularly for niche customers whose needs are often not being met by the bigger players.”