Tipton and Coseley Building Society will now allow retired joint applicants to downsize in the event of the death of either borrower.
This change does not apply to the society’s retirement interest-only (RIO) products.
To qualify, 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 meet affordability individually, but now where this cannot be proven Tipton will accept sale of property if the equity is sufficient to allow the surviving borrower to purchase a two-bedroom flat or house within a five-mile radius of the mortgage security.
This latest criteria change is subject to Tipton’s standard requirements for interest–only, which includes the sale of the mortgaged property, being satisfied.
This requires a minimum £200,000 equity, increasing to £500,000 for properties located within the M25 and a maximum 60 per cent loan to value (LTV).
Richard Groom, head of mortgage sales at the 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.”
Nottingham BS launches 10-year fixed mortgage
The Nottingham Building Society is launching a 10-year fixed rate residential mortgage, with an interest rate of 2.30 per cent and maximum 70 per cent loan to value (LTV).
The product will be available from 4 May and it is the first time the building society has offered the fixed payment term.
The no-fee mortgage is available on properties up to £750,000 when valued by its automated valuation method (AVM), a temporary process which has been put in place due to the coronavirus pandemic.
The product is available for property purchase and remortgage and also includes a tiered early repayment charge (ERC), beginning at seven per cent in year one and dropping to one per cent in the final fixed rate year.
Nikki Warren-Dean (pictured), head of intermediary sales at The Nottingham, said: “Introducing a mortgage which gives customers mortgage payment peace of mind for 10 years is a really positive addition.
“We are determined to remain as agile and proactive as we can be during what is a challenging time for everyone and, aligned with bringing in a new AVM policy to keep the pipeline flowing, we are confident the new product adds choice to our range.”
“It is also the first time we have brought in tiered ERCs, something that not just gives us new product range possibilities but also gives the customer another option when it comes to selecting the mortgage that suits them and their circumstances,” she added.
Paragon releases discounted SVR product for landlords
Paragon has launched a one-year buy-to-let discounted standard variable rate (SVR) product for its new and existing portfolio and non-portfolio landlord customers.
The 12-month product is available for new business, product transfers and further advances and comes with a one per cent discount off Paragon’s SVR for 12 months.
The lender has passed on the Bank of England’s base rate reduction and the discount cuts the rate on this product from 4.95 per cent to 3.95 per cent.
For product transfer and further advance customers, it is available for up to 80 per cent and 75 per cent loan-to-value respectively, has no application, valuation or transfer fee and no early redemption charge.
For new applicants it is available up to 75 per cent LTV, has no product or valuation fee and comes with an early redemption charge of one per cent.
Moray Hulme, Paragon director of mortgage sales, said: “This product is designed for landlords who want some certainty while they wait to see how the next few months materialise and may not want to lock into a longer-term fixed-rate in the current period.”