The specialist lender will now consider using earned income up to the age of 75 to support the application.

Furthermore, 100% of a borrower’s income from their second job is now accepted.

On sale and downsize interest-only cases, the building society will lend up to a maximum of 75% LTV. Minimum equity restrictions apply.

Market Harborough specialises in providing mortgage solutions for complex cases and offers a range of products for expats, high-net-worth (HNW) individuals, buy-to-let (BTL) and holiday let investors as well as those in need of bridging finance.

Iain Smith, head of mortgage distribution, said: “We’re kicking off the summer with these enhancements so we can help even more clients, including those with challenging circumstances.”

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Market Harborough reported record mortgage lending for 2023 reaching £198m, 9% up on the £182m of lending advanced the year before.

The lender said it had made a “conscious decision” to reduce mortgage lending in standard residential markets “where competition was fierce”, and “double down” on focusing on borrowers with more complex needs.

 

Affordability challenges

Danske Bank and Aldermore also made changes to their affordability calculations last month.

A study by the Building Societies Association (BSA), published last month, found that affordability remained a barrier to homeownership.

The trade body’s Property Tracker report for June found that 56% of people felt the deposit needed to buy a home was too high. This rose to 63% among first-time buyers.

The cost of monthly mortgage payments was cited as the main barrier to homeownership, concerning 68% of the survey’s respondents, higher than the 62% who felt this way in March.

Some 65% said raising a deposit was the main barrier, up from 60% previously.