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

Vida Updates Lending Criteria to Support Later Life Borrowers

Vida has launched its Next Chapter Lending proposition, introducing enhanced criteria to support older first-time buyers, mid-life movers, and borrowers remortgaging in retirement. The lender has updated its lending into retirement criteria to provide greater clarity for brokers handling cases where mortgage terms extend beyond retirement age.

Vida’s new definition of lending into retirement applies to any mortgage where the term extends beyond a borrower’s expected retirement age or their 76th birthday, whichever comes first. The lender stated that this change reflects evolving trends in UK homeownership, with more people buying homes later in life and taking mortgage commitments into retirement.

For borrowers within 10 years of retirement, affordability will be assessed using the lower of current earned income or projected retirement income. For those with more than 10 years until retirement, current income may be used if active pension contributions are being made. Where most of the mortgage term falls within retirement, affordability is based on the lower of current or projected income.

Vida’s criteria also specify that the mortgage term must end before the borrower reaches age 86. The lender said these updates are designed to give brokers reassurance and confidence when assessing affordability for clients whose mortgage needs extend beyond their working lives.

These changes are relevant for UK letting agents and inventory clerks as they reflect the increasing diversity of homeownership journeys, with more clients potentially seeking rental or purchase options later in life. The updated criteria may influence the types of tenants and buyers agents encounter, as well as the financial assessments required during property transactions.