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We’ve made criteria changes across our entire specialist mortgage range

Emma Graham
11th June 2024

We now accept annexes across our mortgage range and have increased age of first death stress on our 50+ product

We've increased the first death stress on our 50+ product and enhanced criteria for annexes across the wider range. We've also made changes across our 50+, Retirement Interest Only (RIO) Holiday Let and Professional Mortgage property criteria.

The term ‘death stress’ is well known to intermediaries operating in the later life lending space where joint borrowers over the age of 50 are concerned about lending into retirement. This stress test ensures the mortgage remains affordable for the surviving customer in the event of the death of their partner.

We chose to make the enhancement following a recent review of ONS data and an uplift in life expectancy. It will enable increases to the age at which the first death stress is applied up to age 87.

In addition, we now lend on properties that have one fully self-contained annexe. These can now be accepted providing they are:

•        Let on a short-term basis for holiday letting


•        Occupied by related parties to the property owner (family)

We recognise the number of homes with annexes in the UK is on the rise due to an increase in cross-generational living. This is mainly driven by childcare costs, an increasing number of families supporting their children in saving for their own property as well as a greater numbers of people working from home.

Jonathan Matthews, head of property risk, says: “We continue to see demand for properties with a self-contained annexe as families look to support one another intergenerationally. This change represents further flexibility in our property criteria, removing any ambiguity around annexes for your customers.”

Emma Graham, business development manager, added: “This enhancement will enable customers to spread their mortgage across a longer mortgage term, , making monthly payments more affordable as they lend up to and into their retirement.

“We continually strive to incorporate and reflect on the feedback we receive from brokers. By implementing these latest changes, we aim to better support customers who need more flexible lending arrangements, especially in the current challenging market conditions.”

To find out more about our mortgage products, please visit our intermediaries website

Emma Graham
11th June 2024

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