Mansfield Building Society has extended its support for older borrowers with a series of updates to its mortgage lending criteria, aimed at catering for the growing demand for later life lending.
Among the changes is a 10-year increase to the maximum age for capital repayment mortgages, which can now run until a borrower is 95. The move is designed to give retirees and those approaching retirement greater flexibility in managing borrowing well into later life.
The building society has also raised the maximum loan-to-value for its later life lending products from 70% to 75%. This revised threshold can now apply to borrowers from the age of 75, provided they are in non-manual occupations. Previously, the 75% LTV applied only to manual workers from age 70.
The enhanced 75% LTV mirrors the society’s criteria for interest-only mortgages, which are available up to age 85. These include Mansfield’s interest-only with downsizing option, which allows borrowers to repay the capital by selling their property and moving to a smaller home, as long as at least £200,000 equity is held in the property.
Tom Denman-Molloy (pictured), intermediary sales manager at Mansfield Building Society, said: “More and more borrowers are seeking lending solutions in later life and we always try to respond and adjust our flexible lending to meet their needs.
“Retirement is as much a process as it is an event, and by extending our age ranges, we can accommodate those who may choose to work longer, including those in non-manual roles.
“Importantly, our maximum age and LTV criteria updates can be applied across our various mortgage features, including capital raising, debt consolidation and our product ranges for more complex circumstances.”
