Mortgage applications are to be accepted with a maximum redemption age up to the age of 95, the Tipton & Coseley Building Society has announced.
The Tipton will take into consideration income from pensions pots that are not currently being drawn as well as those in payment alreday subject to receiving confirmation from the borrower’s pension provider of the pensions value and level of drawings that pension holders are entitled to withdraw.
For applications on their standard later life range, a maximum 25-year term will apply.
No maximum term will be applied on its retirement interest-only (RIO) products.
Head of sales at the Tipton Richard Groom said: “ Later life borrowing is a growing market and we are committed to supporting those who are approaching or have already retired”. He added: “The latest changes to our criteria are designed to help provide more options and flexibility for borrowers in later life”.
Mortgage lenders need to be increasingly more innovative as the mortgage market has shrunk over the last year yet there is increasing demand for older age borrowing as we live in an ageing population or the fact that many people either wish to exercise some form of equity release or are trapped in interest only mortgages that they have not repaid and lenders refuse to extend their latest age for when a mortgage needs to repaid by e.g. age 75, 80 etc.
That said, we urge caution for any person looking at later life borrowing and urge you to contact us for advice.