Virgin Money and Clydesdale Bank have aligned lending into retirement policies.
Retirement age change
They now use the customer’s 71st birthday or their chosen retirement age, whichever is earlier.
Retirement income refresh
For customers who need a mortgage term that extends into retirement, the income they use for affordability checks depends on how far from retirement they are.
- Retirement more than 10 years away?
They’ll use their current income for our affordability checks. Plus, we’ll need to see proof that they’re paying into a pension.
- Retirement less than 10 years away, or already retired?
Their affordability checks will be based on their current income or retirement income, whichever is lower.
Some other changes
The maximum age for Clydesdale Bank mortgages has increased from 75, to 75 and 364 days.
For self-employed customers, they may be able to use their current income up to their 76th birthday. It depends on their line of work.
Downsizing for interest-only is only available up to the customer’s 71st birthday or chosen retirement age, whichever is earlier, even if they’re self-employed.
