Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Vida Rebrands Later-Life Mortgages as Next Chapter Lending

Vida has rebranded its later-life mortgage proposition as Next Chapter Lending, introducing updated criteria for older first-time buyers, home movers, and borrowers with loans extending into retirement.

The changes are intended to provide brokers with clearer guidance on affordability assessments for mortgages that extend beyond a customer’s expected retirement age or their 76th birthday, whichever comes first.

Under the new approach, borrowers within 10 years of retirement will be assessed using the lower of their current earned income or projected retirement income. Those with more than 10 years until retirement can be assessed on their current income if they are making active pension contributions. If more than half of a mortgage term falls during retirement, affordability will be based on the lower of current or projected retirement income. All mortgage terms must end before the borrower reaches age 86.

Vida states that these changes reflect evolving homeownership patterns. The updated proposition is aimed at three groups: later first-time buyers, customers over 50 seeking a long-term home, and borrowers remortgaging in retirement to fund home improvements, support family members, or manage living costs.

For UK letting agents and inventory clerks, these changes may influence the profile of tenants and homeowners, particularly among older demographics seeking to access or sustain homeownership through more flexible lending criteria.