Vida has rebranded its later-life proposition as Next Chapter Lending with updated criteria for older first-time buyers, home movers and borrowers with loans stretching into retirement.

The changes are designed to give brokers clearer guidance on affordability assessments where a mortgage term extends beyond a customer’s expected retirement age or their 76th birthday, whichever comes first.

Under the updated approach, borrowers within 10 years of retirement will be assessed using the lower of their current earned income or projected retirement income.

Those with more than 10 years until retirement can be assessed on their current income where they are making active pension contributions.

Where more than half of a mortgage term falls during retirement, affordability will be based on the lower of current or projected retirement income, while all mortgage terms must end before the borrower reaches age 86.

Vida says the move reflects changing homeownership patterns.

The proposition is aimed at three customer groups: later first-time buyers, customers over 50 looking to move into a long-term home and borrowers remortgaging in retirement to fund home improvements, support family members or help manage their own living costs.

Vida head of mortgage product management Ross Williams says “Homeownership journeys are becoming increasingly diverse, and borrowers’ needs are evolving far beyond traditional life stages.

“Our enhanced Next Chapter Lending proposition builds on the flexible criteria we already offer, including solutions such as Joint Borrower Sole Proprietor, to help more people access and sustain homeownership.

“By providing greater clarity around lending into retirement and recognising a range of income sources, including pension income, we’re giving brokers more confidence when supporting customers whose mortgage needs extend beyond their working lives.

“Whether it’s a first-time buyer purchasing later in life, a family using additional income to support a loved one onto the property ladder, or a borrower planning confidently for retirement, our aim is the same: to give brokers the tools, certainty and flexibility they need to help more customers find a place to call home.”