Vida has announced the launch of 'Next Chapter Lending', an enhanced later life lending proposition designed to help brokers support a wider range of borrowers, from later first-time buyers and mid-life movers to customers remortgaging in retirement.
Vida says the refreshed proposition is in response to increasing numbers of borrowers purchasing their first home later in life, moving home in their 50s and maintaining mortgage commitments into retirement.
Under the updated criteria, Vida now defines lending into retirement as any mortgage where the term extends beyond a customer’s expected retirement age or beyond their 76th birthday, whichever comes first.
For customers within 10 years of retirement, affordability is assessed using the lower of current earned income or projected retirement income. For customers with more than 10 years until retirement, current income may be used where active pension contributions are being made.
Where most of the mortgage term falls within retirement (>50%), affordability is based on the lower current or projected income figure.
Mortgage terms must end before the customer reaches age 86.
Ross Williams, head of mortgage product management at Vida, said: “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.”
