Loughborough Building Society has announced a significant enhancement to its lending in retirement proposition by moving to assess income at 4.5x up to the applicant’s retirement age, marking a notable increase from its previous 3.5x income assessment.
This improvement is designed to further strengthen The Loughborough’s unique approach to later life lending and its comprehensive product offerings.
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 4.5x 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 3.5x for both single and joint applicants.
Ashley Pearson, Head of Intermediaries at Loughborough Building Society, 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.
“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.”