Marsden Building Society has improved its affordability model for mortgage customers aged 55 to 85.
This follows a number of updates to the Society’s later life and Retirement Interest Only (RIO) mortgage criteria, which aims to make later life lending more accessible.
As part of the recent changes, borrowers could benefit from five times income multiples on pound-for-pound remortgage cases on the mutual’s later life and RIO products, subject to affordability criteria. This covers the outstanding principal loan balance only and associated fees are excluded.
The maximum age limit for later life mortgages is now set at 90 at the end of the mortgage term and earned income is accepted up until the age of 75. Additionally, minimum equity requirements for downsizing are subject to the underwriter’s discretion at the point of application.
Donna Barclay, head of credit at Marsden Building Society, said: “We’re committed to supporting borrowers in later life who are seeking mortgage solutions for a variety of reasons, including helping family members achieve their homeownership goals. As part of our commitment to later life lending, we’re regularly reviewing our criteria to meet the evolving needs of our members. By making these key changes, we hope to make lending in later life more accessible to more people.”