The lender will increase its maximum age from 70 to 80 as long as certain criteria are met.
This includes the applicant being under the age of 50 at the time of applying, being at least 10 years away from the retirement age and actively contributing to a pension.
Speaking to this publication, Helen Cawthra (pictured), head of intermediary relationships at Vida, said: “What we’re finding is that people do want to take mortgages out slightly later in life and may not want to go down something like an equity release so it’s just giving them more options to lend later in life where it’s the right decision for the client.”
She noted that the trend upwards in age could be due to several factors such as people taking longer terms, moving later in life or having been on an interest-only loan with no way to repay.
Vida extends maximum term
Vida is also extending its maximum term to 45 years, up from 40 years previously.
Cawthra said that it did not expect a “huge volume” of applications looking for 45-year terms, but that the change could allow first-time buyers to improve their affordability.
However, she said that the downsides, such as paying more interest over the period, would need to be outlined by a adviser.
“It’s an option to be considered where it’s the right advice for the client,” Cawthra added.
Vida extends expat list
The lender has also boosted its expat list and is adding Bangladesh, Benin, China, Ghana, Guyana, Indonesia, Kyrgyzstan, Malawi, Malaysia, Maldives, Montserrat, Namibia, North Macedonia, St Helena, Ascension & Tristan da Cunha, Saint Lucia, Seychelles, Solomon Island, Suriname, Timor-Leste, Uzbekistan and Zambia.
However it is also removing Serbia and Moldova.
Rate cuts
The lender is also reducing residential rates by up to 0.55 per cent and buy-to-let rates by as much as 0.7 per cent and is introducing a limited edition buy-to-let product.
In its buy-to-let range, its five-year fixed rate in its Vida 36 range will go down from 6.79 per cent to 6.34 per cent. It is subject to a two per cent fee.
The lenders houses in multiple occupation (HMO) and multi-unit block deal at the same LTV tier in the same range will fall from 6.99 per cent to 6.34 per cent.
The limited edition product is a five-year fixed rate at 75 per cent LTV at 5.34 per cent with a six per cent fee.
The product aims to “support the stress rate challenges” that the industry is facing, Cawthra said.
As an example, on the residential side, its two-year fixed Vida 36 rate at 75 per cent LTV will drop by 0.4 per cent to 7.14 per cent with a £995 fee.
