Loughborough Building Society increases interest-only LTV to 70% for over-80s

23 May 2025

Loughborough Building Society has further strengthened its lending in retirement proposition by increasing the maximum loan to value (LTV) to 70% on interest-only mortgages that extend beyond the age of 80. This replaces the previous 60% LTV cap and opens the door to a broader range of flexible finance solutions for older borrowers.

This criteria enhancement is aimed at supporting borrowers seeking later life borrowing for purposes such as home improvements, debt consolidation, gifting, second home purchases, or even restarting homeownership following life events such as divorce.

The change reflects Loughborough Building Society’s continued commitment to offering progressive lending criteria that responds to the evolving financial needs and property-related aspirations of people entering into and living through retirement.

In September 2024, the Society enhanced its affordability approach by assessing income at 4.5x up to the applicant’s retirement age - a notable rise from its previous 3.5x income assessment - with no additional assessments required when the mortgage extends beyond the age of 80. For applicants already aged 80 or over, The Loughborough will continue to consider applications with a maximum income multiple of 3.5x for both single and joint applicants.

Ashley Pearson, Head of Intermediaries at Loughborough Building Society, commented:

“As a Society, we recognise that many people in their later years may be seeking lower monthly mortgage repayments, often through longer terms or interest-only options, for a huge variety of reasons.

“Whether clients are consolidating debt, improving their home, or investing in a second property, increasing our maximum LTV cap to 70% on interest-only mortgages beyond the age of 80 provides our intermediary partners with a more comprehensive toolkit to support those later life borrowers with unique financial circumstances.

“It’s all part of our mission to empower this generation to access the funding they need, in a responsible manner, by offering greater flexibility and financial independence in their retirement.”