Loughborough Building Society’s highest LTV rose to 70% from 60% of stock mortgages, over 80 years old.
The lender said the added LTV was intended to support borrowers seeking future living borrowings such as home renovations, debt consolidation, gifts, a second home purchase, and even restarting home ownership after life events like divorce.
In September 2024, the association updated its affordability approach by evaluating income of 4.5 times until the applicant’s retirement age (an increase over the 3.5 times income assessment), and no additional assessment is required when mortgage extensions exceed 80 years of age.
For applicants who are already 80 years of age or older, Loughborough will continue to consider applications with a maximum income multiple of 3.5 times for single applicants and joint applicants.
Ashley Pearson, director of agency at Loughborough Building Association, said: “As a society, we recognize that many people may seek lower monthly mortgage repayments for longer periods or longer term or interest choices for a number of reasons.
“Whether clients are consolidating debt, improving homes or investing in second property, raising our maximum LTV cap to 70% of interest-only mortgages over 80 years old, this provides our intermediary partners with a more comprehensive toolkit to support those who later live in a unique financial situation.”
