22 June 2017
There are many reasons why lending into retirement is more in demand than ever before – the UK population is aging and life expectancy continues to increase. On average first time buyers are now over 30 and 32% of borrowers are taking out mortgages longer than the traditional 25 year term (according to CML).
In 2016, 8% of mortgage sales were to over 55s,and 1 in 3 mortgages sold to those under 55 were going to run beyond the state retirement age. This type of lending can capture a lot of scenarios from borrowers wanting to ‘right size’ as their children fly the nest to first time buyers in their 40’s looking for a 30 year term.
This means a wide range of solutions are required and that’s why Leeds Building Society enhanced their lending into retirement criteria by increasing the maximum age to 80 and offering more flexibility. They’ve now created a lending into retirement income assessment tool to illustrate what income proof they will need to assess your client’s affordability.
By inputting your customer’s current age, retirement age and mortgage term, e.g. a 48 year old wanting to retire at 66 with a 25 year mortgage term, you can find out what income evidence Leeds Building Society will use to calculate affordability.
To access the tool, click here.