Leeds BSJun 26 2017

Leeds launches online tool for lending into retirement

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Leeds launches online tool for lending into retirement

Leeds Building Society has launched a tool that is designed to help brokers with customers who are interested in borrowing into retirement.

The tool gives intermediaries more information about what proof of income they may need to provide in support of their client’s application.

It comes as the age at which people buy their first property continues to rise, and more and more people take out mortgages longer than the traditional 25-year term.

In 2015, more than a third (35 per cent) of all new residential lending involved a mortgage that was due to extend beyond the borrower’s 65th birthday.

Leeds improved its criteria for lending into retirement in October 2016, raising the maximum term from 25 to 40 years in cases where customers are looking to borrow past their stated retirement age.

Paul Howard, adviser at Reading-based Box Financial Planning, welcomed the news.

“Leeds is already one of the more generous companies in this area,” he said. “Anything that would give information about whether a mortgage would be affordable post-retirement is good. With mortgage costs high and when interest rates rise, it is going to be useful.”

simon.allin@ft.com