The Mansfield Building Society has extended its maximum loan to value (LTV) to 70% for retired residential borrowers up to age 85 on both capital repayment and interest only mortgages.
In addition, ‘property downsizing’ is now also available across its full range of interest-only residential mortgages on the same terms as above.
The move follows the introduction of the society’s Retirement Interest Only (RIO) proposition in 2018, when the Mansfield launched two products with no maximum age, available to CeRER or CertER qualified advisers as an alternative to equity release.
Paul Lewis (pictured), the Mansfield’s national development manager, said the latest set of criteria changes provide flexibility and choice for older borrowers and is expecting the terms to be extremely well received by brokers and their clients.
He said: “At the Mansfield, we are well known for our flexible underwriting and because we take a common sense approach to each and every application, we’re well-placed to respond to this underserved segment of the population wanting access to mortgage finance later in life.
“To ensure that borrowers are able to stay in control of their financial affairs over time the society may suggest independent legal advice or a Lasting Power of Attorney as a condition of the mortgage offer, enabling the borrower to plan for, and enjoy, the retirement they worked hard for.
“Whatever the circumstances, it’s important that older borrowers understand the range of options available to them to help them make the right decision for the years to come – we’re thrilled to be playing our part in extending our criteria to meet this growing need.”