Beverley Building Society has introduced a tiered approach to assessing income from self-invested personal pensions, giving brokers greater flexibility when placing later life cases.

The updated methodology enables the society to use up to 8% of a customer’s SIPP pot for affordability purposes, with the proportion varying according to the borrower’s age.

Beverley said the change should provide a more tailored assessment of pension income and better reflect how customers access and use their retirement funds.

The revised treatment is available immediately and is intended to support borrowers in or approaching retirement, including those with more complex income arrangements.

It complements Beverley’s existing retirement interest-only mortgage proposition, which includes a lifetime discount product without early repayment charges.

The society also offers a joint-life affordability calculator designed to produce more inclusive lending decisions for couples.

FLEXIBLE APPROACH

Stu Bryce (main picture), head of new business at Beverley Building Society, said: “We’re continually looking for ways to evolve our criteria to support how customers manage their finances in later life.

“By introducing a more flexible approach to SIPP income, we can help more borrowers.

“This is another step forward in our commitment to the later life market, giving brokers greater scope to place cases and helping more customers access the lending they need.”