One introduces changes to lending policy, the other implements product rate cuts
Two building societies – Loughborough Building Society and Market Harborough Building Society – have announced changes to their mortgage propositions, aimed at enhancing flexibility for borrowers and addressing a range of financial needs.
Loughborough Building Society has introduced changes to its lending in retirement policy, allowing borrowers to raise capital for savings and other purposes.
Under the revised criteria, borrowers may access funds for a variety of needs, including home improvements, debt consolidation, family gifts, new vehicles, care home fees, holidays, deposits on second homes or buy-to-let properties, or simply to boost their savings. Applications will continue to be reviewed on a case-by-case basis.
The change builds on enhancements made in September 2024, when the mutual increased its income multiple assessment to 4.5 times up to the applicant’s retirement age, up from the previous 3.5 times. For applicants aged 80 and older, the maximum income multiple remains at 3.5 times for single and joint applications.
“As a society, we continually strive to adapt and evolve our product offerings to better meet the needs of borrowers throughout their lending journey,” said Ashley Pearson (pictured left), head of intermediaries at Loughborough Building Society.
“This latest enhancement to our lending in retirement criteria demonstrates our ongoing commitment to providing flexible and responsible solutions, empowering borrowers to make the most of their later years and achieve their financial goals with the support they deserve.”
Meanwhile, Market Harborough Building Society has announced reductions in its residential and buy-to-let fixed mortgage rates, effective immediately.
Two-year fixed rates have dropped by 25 basis points (bps), while three- and five-year fixed rates have been reduced by 30bps. Residential rates now start at 5.69% for fixed products, with buy-to-let fixed rates starting at 5.75%.
The lender is also reducing its standard variable rate (SVR) by 20bps to 7.99%, effective January 1, 2025. The changes apply to both simple and complex cases, with products available for up to 80% loan-to-value (LTV) and borrowing amounts of up to £5 million.
“We’re pleased to announce this reduction across our residential and let fixed rates, and our SVR from January 1,” said Iain Smith (pictured right), head of mortgage distribution at Market Harborough Building Society. “We informed our brokers about these rate changes, in line with our ‘Best for Brokers Promise’, which includes a commitment to provide at least 24 hours’ notice of any product withdrawal.”
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