Tipton and Coseley to launch retirement interest-only mortgage on Monday
Tipton and Coseley Building Society will launch Retirement Interest-Only (RIO) mortgages for over-55s on Monday.
At the same time Tipton has scrapped the upper age limit for standard lending.
Cammy Amaira (pictured), director of sales and marketing at the Tipton, said: “For many years now, older borrowers have seen their mortgage options dwindle so it’s encouraging to see the FCA acknowledge this.
“Later life borrowing is a growing market and we’re committed to supporting those who are approaching retirement or are already retired.
“In many cases, these types of borrowers have an established track record of maintaining payments and with retirement income guaranteed, could be perceived as lower risk lending.
“The launch of our RIO mortgage range coupled with removing the upper age limit for standard lending is the first step in developing a lifecycle of mortgage products aimed at building a long-term relationship with our members.”
To 60% loan-to-value there are initial 3 and 5-year fixed rate options available with rates of 3.38% and 3.58%, as well as 3 and 5-year discounted variable options at 3.09% and 3.29%. The products allow 10% overpayments without charge, with mortgages up to £1m.
The products offer an interest-only monthly payment until the borrower dies or moves into permanent long term care, at which point the mortgage is repaid.