LiveMore Capital, the specialist lender of later life mortgages, has launched a new Term Interest Only mortgage for over-50s, aiming to broaden the choice for an underserved market.
An alternative to LiveMore’s existing RIO offering, the new product allows customers to take out a new mortgage or remortgage for a fixed term, calculated according to affordability.
This flexible solution gives current homeowners the opportunity to extend their time in their property, or aspiring homeowners the option to take out a mortgage where it may not otherwise have been possible.
With inflation now at a 30-year high, prompting further uncertainty as interest rates continue to rise, it also provides the opportunity for a longer-term rate fix.
The new interest-only product also allows for customers to make capital repayments of up to 10% per year if applicable, providing them with more options according to their needs.
It comes with a reduced lower age limit of 50 with the upper age limit of 80, and is available on an extensive range of fixed rates, from five years to 30 years.The high maximum LTV of 65% also helps borrowers and intermediaries alike.
Alison Pallett (pictured), LiveMore’s MD of sales, said: “We have listened closely to our intermediaries and we’re excited to be launching this enhancement in direct response to their requests, reacting quickly to meet the needs of brokers and borrowers.
“Helping more customers over the age of 50 is at the heart of what we do, and bringing this additional product to our range is a continuation of our journey to be able to offer more choice to the over 50s. We’re showing customers that it is possible to get a mortgage in later life, and they always have options.”
Danny Belton, head of lender relationships, Legal & General Mortgage Club, added: “The expansion of products and affordability criteria brings benefits to brokers, borrowers and lenders alike. LiveMore has been widely received as a very positive addition to the historically underserved later-life lending market and today’s announcement will help many to enjoy the retirement that they deserve. Demand for further additions to this sector remains high, and we look forward to developments from LiveMore and other lenders in the coming months.”
Bally Chard, principal advisor, Mahay Solutions, concluded: “My client bank will benefit tremendously from the ‘Term Interest Only’ (TIO) mortgage, which is a much needed refreshing product geared for the over 50’s to aged 80 – enabling people to remain in their current homes until such a time that they either clear the balance from any investments at maturity, sale of property or even a product transfer to a RIO product. An excellent package all round.”
The new offering comes shortly after research from UK Finance found that many later-life borrowers were struggling to meet affordability requirements for a mortgage, an issue likely to be compounded by continued rises in interest rates.
The demand for later-life mortgages is still strong overall – UK Finance reported over 44,000 new later-life mortgages and total lending of £6.5bn in Q3 2021.
