UK later life lender Standard Life Home Finance has increased the maximum loan-to-values (LTVs) available across its Horizon lifetime mortgage range, from 49% to 51%.
The Horizon range will now cater to a wider group of homeowners considering a lifetime mortgage, including those considering a Horizon Interest Reward plan.
Standard Life Home Finance’s Horizon range provides lifetime mortgage loans of between £15,000 and £1.5m, and is available on both a lump sum and drawdown basis.
Existing features of the Horizon range include some of the lowest early repayment charges (ERCs) in the later life market of just eight years, and downsizing protection from day one.
Horizon Interest Reward is available on lump sum plans, providing clients with a discounted interest rate for the duration of the lifetime mortgage should they commit to making set monthly interest payments for a specified term.
The increase in LTVs followed criteria enhancements to the Horizon range announced in March, which broadened the type of properties which could qualify for these types of products.
This included accepting properties where the roof has previously been treated with foam spray, amendments to what can be considered as maintenance under the estate charge, and considering cases where there is a commercial presence within the vicinity of the property.
Sanjay Gadhia, head of sales at Standard Life Home Finance, said: “These higher LTVs are part of Standard Life Home Finance’s mission to bring the many benefits of the Horizon lifetime mortgage range to a greater number of later life customers.
“As house prices rise, unlocking a larger percentage of your home translates into significant increases in the sums available from a Horizon lifetime mortgage, making them even more appealing to advisers and their clients.
“This increase in LTVs on Horizon Interest Reward should be welcome news for advisers, as 67% of those on higher LTV plans had opted for this facility in 2024.
“The ability to secure a discounted rate through making full or partial interest payments on Horizon Interest Reward puts the client in control, allowing them to tailor the plan to meet their needs and circumstances.
“The LTV increase follows so quickly after the criteria enhancements demonstrating our commitment to acting on adviser feedback, and adapting our products to ensure they work for a broader range of clients.
“Standard Life Home Finance is becoming known for its peerless service, with the Smart Money People’s Mortgage Lender Benchmark for H2 rating it best for speed in processing lifetime mortgage applications.
“This, coupled with this added flexibility, means Horizon and Horizon Interest Reward are becoming an increasingly appealing solution for later life advisers and their clients.”
