LiveMore Capital, a specialist retirement interest-only mortgage lender, has joined the lender panel of SimplyBiz Mortgages.
Newly launched LiveMore Capital mainly provides flexible RIOMs for customers aged 55 and over. The lender offers a high LTV of 75 per cent, flexibility around the property types considered and a wide range of fixed rates.
RIOs offer a solution to retired homeowners who often struggle to get a mortgage even when they can afford the repayments because lenders ignore pension savings and refuse to take on older borrowers.
Recent data from Responsible Life, a specialist mortgage broker for older borrowers, pointing to as many as eight in 10 over-55s being locked out of the market.
The legacy of interest-only mortgages, and retirement plans designed at 50 to downsize later in life to pay off borrowing which then become unattractive once people reach their 70s, have created a growing army of older borrowers shut out by most lenders, according to property experts.
Estate agent Savills found 52p per cent of 50 to 64-year-old owner occupiers have outstanding mortgages, and 8 per cent of over 65s.
SimplyBiz Mortgages head of strategic development Richard Merrett says: “The number of interest-only mortgages held by older borrowers, and the growing requirements for more people wanting to help family via the Bank of Mum and Dad, suggests the RIO market is going to become increasingly important as a later life lending option.
“LiveMore has a proposition which challenges some of the criteria and income requirements of the existing product set, and we feel this partnership will add a valuable alternative option to finding good customer outcomes for our members active in the later life space.“
The typical home loan lasts 25 years, but 41 per cent are for more than 25 years, up from 14 per cent in 2006, according to Financial Conduct Authority data.
LiveMore director of sales Alison Pallett comments: “We have been working hard to broaden our market reach so that we can ensure we provide a greater choice of options for intermediaries to help more borrowers over the age of 55.
“The opportunity to work with SimplyBiz Mortgages as it undertakes a relaunch of their later life lending offering is perfect timing for us and gives us a fantastic platform to showcase our products and proposition”.
