Tipton & Coseley Building Society has amended its later life lending criteria, applicable to retired customers who are applying for a later life mortgage product.
The change introduces a downsizing option upon the death of either borrower.
The criteria change does not apply to Tipton’s retirement interest only (RIO) products.
To qualify, applicants must be over 55 and receiving verifiable income from a pension or other source, such as investments or rental income.
Previously, each applicant had to satisfy affordability individually, but where this cannot be proven Tipton will now accept the sale of property, if the equity is sufficient to allow the borrower to purchase a two-bedroom flat or house within a five-mile radius of the mortgage security.
The criteria change is subject to Tipton’s standard requirements for interest only being satisfied, which requires a minimum £200,000 equity, increasing to £500,000 for properties located within the M25 and a maximum of 60% loan-to-value ratio (LTV).
Richard Groom, head of mortgage sales at 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.”