Mansfield Building Society has extended its maximum loan-to-value to 70% for retired residential borrowers up to age 85.
The change applies to both capital repayment and interest-only mortgages.
At the same time the society has made property downsizing available across its range of interest-only residential mortgages.
Paul Lewis, national development manager, 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.”
The move follows the introduction of the society’s Retirement Interest Only (RIO) proposition in 2018.