This replaces the previous 60% LTV cap and opens the door to a broader range of flexible finance solutions for older borrowers.
In September 2024, the Society enhanced its affordability approach by assessing income at 4.5x up to the applicant’s retirement age - a notable rise from its previous 3.5x income assessment - with no additional assessments required when the mortgage extends beyond the age of 80. 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:
“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.”
