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New mortgage gives security to older borrowers

Over 55 and worried about your mortgage?

Changes to lending rules mean security and flexibility for a whole generation of home owners.

A new breed of mortgages on offer from the Tipton & Coseley Building Society is great news for older borrowers.

In the wake of the Financial Conduct Authority’s recent changes to rules on lending, the Tipton can now lend to people in this age group who are seeking to remortgage on interest-only loans.

There is no end date or upper age limit and the Tipton can also offer new mortgages for home movers over the age of 55.

Cammy Amaira, director of sales and marketing at the Tipton, says retirement interest-only mortgages, or RIOs, can offer a lifeline to the thousands of older borrowers stuck on existing interest-only mortgages that are coming to the end of their terms.

He says: “Our new over-55 mortgages are designed to provide more options and flexibility in later life. They offer our customers more choice, whether paying off their mortgage before retiring or helping family members onto the housing ladder.

“We can also lend on purpose-built retirement properties with no upper age limit.”

If you’re 55 or over and nearing the end of an interest only mortgage, with no means to pay off the balance, you may be able to remortgage to the Tipton on an interest-only basis, provided there is 40% equity in your home on application.

You may also be able to release up to 25% of the value of your home to gift to a family member, enjoy a holiday or fund home improvements.

Borrowers must still be able to afford the on-going interest payments on retirement interest-only mortgages.

Ultimately the loan is repaid when the property is sold.

This occurs either when the borrower dies, or is taken into long-term care.

CASE STUDY ONE

Re-mortgaging

A retired couple, aged 65, nearing the end of a 25 year interest only mortgage, have no means to pay the outstanding balance. Based on their combined pension income, they may be able to borrow £50,000 to pay the £35,000 outstanding balance and gift £15,000 to their son for a deposit on his first home.

CASE STUDY TWO

Purchasing a property

A retired couple, both aged 60, are looking to relocate to be closer to family and grandchildren. They’re currently mortgage-free, living in a property valued at £200,000 and need to borrow £50,000 to purchase their new home. Based on their combined pension income and income from a buy-to-let property, they should be able to borrow the additional £50,000.

The Tipton & Coseley Building Society was founded in 1901 and is based in the West Midlands. It is regulated by the Financial Conduct Authority (FCA).

For information on our mortgages for retired people please visit Tipton & Coseley Building Society or call us on 0121 557 2551

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Tipton & Coseley Building Society
70, Owen Street
Tipton,
West Midlands
DY4 8HG

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Terms and conditions apply. Further details are available on request. Limited funds available on these offers and they may be withdrawn at any time without notice. Rates correct at 16 August 2018

Disclaimer provided by Silversurfers
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to the accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
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