The West Bromwich Building Society has made a number of criteria changes including cutting the maximum age for borrowers at the end of the mortgage term from 80 to 70 years old.
Previously, the building society would allow a borrower to take out a loan beyond their retirement to age 80, as long as they could afford the loan.
From the end of last week however, the term must end by the person’s 71st birthday.
Lenders which will still lend to age 80 or above include Leeds Building Society, National Counties Building Society and Darlington Building Society. Additionally, Newlife has a mortgage with no maximum age, aimed specifically at borrowers over 65.
The building society has also increased its income multiples. Previously, sole applicants could borrow up to 3.75 times their main income, whereas joint applicants could borrow up to 3.75 times their main income and one times their secondary income, or 2.75 times their joint income.
Now sole applicants can borrow up to 4.25 times their income if they earn under £40,000 or 4.75 times their income if they earn over £40,000.
Joint applicants can borrow up to 4.25 times their main income and one times their secondary income if it amounts to less than £40,000; 3.25 times their joint income if they earn under £40,000; or 3.75 times their joint income.
In other criteria changes, West Brom will no longer allow parents to act as a guarantor for their child and it has clarified its position on gifted deposits. Previously, deposits from an individual other than a parent were generally not accepted, but now they have been completely stopped.
For interest-only loans, the building society will no longer allow the sale of the mortgaged property, the sale of a second property or inheritance as a repayment vehicle.