Through selected packagers, the society is offering two high income products, for purchases and remortgages. Borrowers opting for these products can access an income multiple of up to six times income, for mortgages up to 85% loan-to-value (LTV).
To qualify, the highest income earner on the application must receive a gross salary of a minimum of £50,000. The rates offered across both products are 2.59% discounted for two years off the standard variable rate. A maximum loan limit of £450,000 is imposed and a 0.5% product fee applies. A lower income multiple may be used depending on the outcome of the affordability assessment.
One packager on Tipton’s high income multiple panel is AToM. Managing director Dale Jannels said: “It’s great that a lender is looking to help those searching for a mortgage who might not fit normal income multiples. Tipton is offering a superb product, great LTV and will manually assess cases. Assuming the client fits the affordability calculator, these high income multiple products will help many customers.”
The high income multiple deals are also available through Complete FS and Manor Mortgages.
The society has also expanded its shared ownership range. A shared ownership fixed rate is now available for both purchases and those remortgaging, at 3.69% until 30 April 2019. The rates are available for mortgages up to 90% of the share being purchased including new-build homes and apartments. The maximum loan amount is £250,000 and there are no product fees. Remortgage applications also benefit from free standard legal fees. Enhanced income multiples are not available on the shared ownership range.
Richard Groom (pictured), head of mortgage sales, said: “These are still difficult times for potential homeowners which is why we’re doing all we can to help. This new competitive fixed rate will protect borrowers from increases in monthly mortgage payments if interest rates rise.”
Analysis of the shared ownership market released by the Council of Mortgage Lenders (CML) revealed that around 200,000 households own their homes on a shared ownership basis. Since 2006, more than 60,000 shared ownership mortgages have been advanced by lenders.