Nottingham Building Society has revamped its lending rules to offer first-time buyers the option of 40-year mortgages. The society has eliminated its loan-to-value cap on lending into retirement, allowing buyers to extend their mortgage term up to age 75. Additionally, Nottingham Building Society has implemented new checks, such as considering confirmed pay increases and future employment, in mortgage assessments.
Extending the mortgage term to 40 years typically results in lower monthly payments, which can benefit younger buyers facing financial constraints. However, opting for a longer mortgage may lead to paying significantly more in interest over the loan’s duration and a slower increase in homeownership compared to shorter-term mortgages.
Apart from Nottingham Building Society, other lenders offering 40-year mortgages include HSBC, Halifax, Santander, Nationwide, Leeds Building Society, West Bromwich Building Society, and Yorkshire Building Society. Nottingham Building Society has also reduced the income threshold for borrowers to qualify for a mortgage, from £85,000 to £60,000 gross income, including joint applications.
In other news, Ryanair is projecting strong profits following a higher-than-expected increase in fares. The airline recorded a 6% year-on-year rise in passengers, reaching 47.5 million in the past quarter. Average fares climbed by 4% to 44 euros (£38.18), driven by robust mid-term school holidays in October and bookings leading up to the holiday season.
Ryanair anticipates full-year underlying profits between £1.84 billion and £1.93 billion, up from £1.42 billion in the previous year. CEO Michael O’Leary attributes the sales boost to increased publicity from a recent feud with Elon Musk, the world’s wealthiest individual.
Meanwhile, luxury shoe chain Russell & Bromley is closing its first store after being rescued by Next. Next has acquired the brand and intellectual property for £2.5 million and a portion of current stock for £1.3 million. However, only three out of 36 Russell & Bromley stores – Bluewater, Chelsea, and Mayfair locations – were included in the deal.
A recent survey revealed that nearly half of UK consumers are open to using AI for shopping assistance. The popularity of AI shopping assistants has more than doubled over the past year, with 28% of all age groups utilizing them for personalized product recommendations and online item comparisons. Younger demographics, particularly those aged 16 to 43, have shown increasing interest in letting AI manage their entire shopping experience.
Nicole Olbe, managing director at Adyen UK, noted the shift from AI browsing to purchasing behavior among customers. She emphasized the importance for retailers to enhance payment infrastructure to support secure and scalable AI-driven checkout experiences.