"We have once again listened to brokers by providing greater flexibility to our later life products."
To qualify, applicants must be over 55 and receiving verifiable income from a pension or other sustainable income, such as investments or rental income.
Previously each applicant had to satisfy affordability individually. Where this cannot be proven, the Tipton will now accept sale of property if the equity within their property is sufficient to allow the surviving borrower to purchase a two-bedroom flat or house within a five-mile radius of the mortgage security.
This latest criteria change is subject to Tipton’s standard requirements for interest only (sale of mortgaged property) being satisfied – which requires a minimum £200,000 equity, increasing to £500,000 for properties located within the M25 and a maximum 60% LTV.
The criteria change does not apply to the Tipton‘s retirement interest-only products.
Richard Groom, head of mortgage sales at the Tipton, said: “We have once again listened to brokers by providing greater flexibility to our later life products. It also provides customers peace of mind knowing that they can downsize in the event of a joint applicant sadly passing away."
