Tipton & Coseley Building Society has amended its lending criteria applicable to retired customers who are applying for one of the society’s later life mortgage products.

The latest criteria change, which introduces a downsizing option upon the death of either borrower, does not apply to the Tipton‘s Retirement Interest Only (RIO) products.

To qualify, the society stated that 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. Under the new change, however, where this cannot be proven, the Tipton said it will now accept the sale of a 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.

The criteria change is subject to the Tipton’s standard requirements for interest only sales 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.

Head of mortgage sales at the Tipton, Richard Groom, 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.”

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