Virgin Money and Clydesdale Bank have been working to align their policies for lending into retirement.

The lenders now use the customer’s 71st birthday or their chosen retirement age, whichever is earlier.

For customers who need a mortgage term that extends into retirement, the income the lenders use for their affordability checks depends on how far from retirement they are.

If retirement is more than 10 years away then the lenders will use their current income for our affordability checks.

They will also aligning need to see proof that they’re paying into a pension.

If retirement is less than 10 years away, or the applicant is already retired, the the lenders’ affordability checks will be based on their current income or retirement income, whichever is lower.

Meanwhile, the maximum age for Clydesdale Bank mortgages has increased from 75, to 75 and 364 days.

For self-employed customers,  the lenders may be able to use their current income up to their 76th birthday. It depends on their line of work.

Downsizing for interest-only is only available up to the customer’s 71st birthday or chosen retirement age, whichever is earlier, even if they’re self-employed.