Tipton intermediaries: later life lending 75% LTV

arrangement fee £999

booking fee no fee

initial rate 3.2%

followed by our SVR 5.34%

The overall cost for comparison is 4.9% APRC

Fixed until 31/05/2025 . Early Repayment Charges apply. . This product may be withdrawn at any time.

Product key features

Who's the product for?
Product related fees
Mortgage amounts
Mortgage repayment terms
Early Repayment Charges

Who's the product for?

Affordability can be assessed using earned income up to retirement age. Once the client reaches retirement, affordability for the remainder of the term will be calculated using verifiable income from a pension or other sustainable source, such as investments or rental income. Death stress calculations will be used should either borrower reach age 80 during the mortgage term. Once affordability is satisfied, we apply a 4.49 times income multiplier to determine the maximum level of borrowing. To verify if your clients meet affordability criteria, contact a member of the team directly.

Split Terms

Did you know that within our later life lending proposition, clients can choose to split their term to reflect their changing financial position following retirement? Above affordability requires still apply, but can also be assessed separately against their current earned income, and future pension provision enabling a proportion of the mortgage to be secured over an extended term. For example:

Mr & Mrs Client are 55 and 52 years of age and are moving to a new house and require a mortgage of £180,000 to support this new purchase. Their current salaries are sufficient to support the £180,000 borrowing, but rather than apply a term to Mr scheduled retirement age (70). They were able to demonstrate that their pension provision was sufficient to support borrowing in retirement of £100,000. This enabled an application to be agreed on a split extended term:
Part 1 £80,000 on a capital and repayment basic over 14 years
Part 2 £100,000 on an interest only basis for 29 years

For joint applications where both applicants are retired but cannot prove affordability in sole name applications will be considered where there is enough equity available to downsize to a two bedroom flat/house within 5 miles of the mortgage property. Your clients can use the sale of their home as their repayment strategy provided they have sufficient equity to downsize to a two bedroom flat/house within 5 miles of the mortgage property.
Up to the maximum product LTV can be released for capital raising purposes. Borrowers must provide a signed declaration stating that in the event of death it is the intention of the surviving borrower to downsize. The mortgage must be repaid following a life event, including:

death of the sole borrower or the surviving borrower for joint mortgages;
sole borrower or surviving borrower for joint mortgages entering long-term residential care; or
sale of the property.

These products are available for all residential properties (providing they meet our property criteria), as well as purpose-built retirement properties. For retirement properties, the following criteria restrictions apply:

Maximum 60% LTV
£200,000 minimum property value;
Section 106 restrictions are accepted where the developer has specific right to first refusal of buy back as long as no onerous terms or reduced value apply;
New build apartments are accepted; and
Properties within a large scale retirement village will be considered subject to valuer feedback