Loughborough Building Society has raised its maximum loan-to-value (LTV) from 60% to 70% for interest-only mortgages that run past age 80.
The change is aimed at giving older borrowers more flexible finance options, such as for home improvements, debt consolidation, gifting, second home purchases or getting back on the housing ladder after divorce.
For applicants already aged 80 or over, the maximum income multiple remains at 3.5 times for both single and joint borrowers.
Ashley Pearson, head of intermediaries at Loughborough Building Society, said: “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.
“It’s all part of our mission to empower this generation to access the funding they need, in a responsible manner, by offering greater flexibility and financial independence in their retirement.”
