Lender also reprices entire range
Specialist lender Vida has announced new enhancements to its lending criteria, aimed at supporting borrowers with affordability challenges.
The lender has increased the maximum age at the end of a mortgage term to 80-years-old and will consider lending up to an applicant’s 80th birthday based on their current income, provided that the applicant is under 50-years-old, is at least 10 years from retirement, and is actively contributing to a pension scheme.
It added the other applicants can be considered, but no income will be used for affordability. Repayment needs to be on a capital and interest basis.
Vida has also extended the maximum potential mortgage term from 40 years to 45 years.
Aside from the latest criteria enhancements, the lender is also repricing its entire product range and launching new limited editions.
Buy-to-let initial rates are being cut by up to 0.70% with rates from 5.74% for five-year fixed and 6.84% for two-year fixed.
Residential rates get reductions of up to 0.55%, putting rates to as low as 6.79% for five-year fixes and 7.14% for two-year fixes.
Vida has also introduced new limited edition buy-to-let five-year fixed products at 75% LTV with a 6% fee and rates from 5.14%. These are available for single units, houses in multiple occupation and multi-unit blocks.
“We want to help as many people as possible move forward with realising their property ambitions at any stage in life,” said Helen Cawthra (pictured), head of intermediary relationships at Vida.
“Affordability is becoming more and more challenging for many, and we want to try and help borrowers under the age of 50 where mortgage terms may take them into retirement, so these latest enhancements to our criteria and products will give intermediaries additional options to discuss with their clients.”
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