Halifax has loosened its affordability criteria for lending into retirement to take into account a borrower’s income beyond the State pension age, up to a maximum working age of 70.

The lender will now consider earned income to calculate the mortgage income where there is a clear intention to work beyond State pension age up to the age of 70.

If the mortgage term extends past 70 or the client’s anticipated retirement age if sooner, the lender will continue to use anticipated retirement income in the affordability assessment.

David Hollingworth, associate director of communications at London and Country, welcomed the move explaining that many people now expected to work beyond the confines of the state retirement age.

“This brings them into line with the approach that many have already adopted,” he said.

“What it fails to do is to apply a more radical rethink on how flexible criteria needs to be when it comes to helping older borrowers. Those with a stable income that prove longer term affordability continue to be disappointed by the widespread caps on maximum age.”