The society’s updated criteria allows borrowers to extend the term of their mortgage beyond age 75 if they can demonstrate repayment affordability through pension or investments.
Previously, the society insisted the maximum age at the end of the mortgage term could not exceed 75.
Other changes to Newcastle’s lending policy include an increase in its 95% LTV borrowing limit to £350,000, up from £300,000. It has also increased its maximum LTV on mortgages up to £500,000 from 80% to 90%.
The society has also removed the age restriction for guarantors. Each applicant will now be considered as a ‘normal’ case would be. Previously, guarantors had to be aged 60 at the point of application.
The maximum LTV for new build homes has increased, with Newcastle now lending up to 90% LTV on new-build houses, up from 80% LTV. It will continue to lend up to 80% LTV on new-build flats.
Newcastle corporate development executive Steven Marks, said: “The intermediary sector continues to be an important community to us. We regularly review market conditions to ensure we continue to provide a competitive offering; as a result, we recently made some positive changes to our lending policy.
“This includes the point that we will consider borrowers beyond 75 years of age and such applications will be assessed by our underwriting team. This has been changed to allow a fair and sensible approach to be taken towards the applicant supporting the loan to help them to make an informed decision.”
Full list of changes to Newcastle’s lending policy:
