Old-age mortgages boost LiveMore's rapid expansion

Old-age mortgages boost LiveMore's rapid expansion

In the dynamic world of mortgage lending, LiveMore, operating under the name More2Life, stands out as a solutions-based lender catering specifically to borrowers in their later years. This innovative company offers a variety of mortgage products tailored to the unique needs of individuals aged 50 to 90.

As many people enter later stages of life, they often find themselves dealing with purchases, such as downsizing, moving between properties, or buying a property after a divorce. For these individuals, taking out a mortgage can present challenges due to lenders' hesitance. LiveMore addresses this issue by identifying income in retirement, such as state or final salary pensions, as often being "high quality" and "as guaranteed as it's going to get."

In response to the growing need for flexible equity release options, LiveMore introduced the equity release lifetime mortgage to its lineup in 2023. This product provides lower fixed interest rates compared to older schemes and allows voluntary interest payments to control loan growth. Additionally, they offer benefits like cashback to cover setup fees and options for inheritance protection.

Alternatives to traditional equity release products for older borrowers include Retirement Interest-Only (RIO) mortgages and downsizing. RIO mortgages allow homeowners aged 55+ to borrow against their property while making monthly interest payments without repaying the capital until the home is sold, which can be more cost-effective if borrowers can afford monthly payments. Downsizing involves selling a larger home to purchase a smaller one to unlock equity without incurring debt, though it comes with costs like stamp duty and estate agent fees.

LiveMore's RIO mortgage combines elements of a standard interest-only mortgage and elements of an equity release product. This innovative product offers a current pay mortgage with no fixed end date, repayable upon the sale of the property, long-term care, or the borrower's passing away.

The market for later life mortgages is growing rapidly, with LiveMore believing it will continue to expand as borrowers become more educated about their options. In 2020, LiveMore began lending and was ranked 52nd in the Business Leader Growth 500 list this year, following a 721% increase in revenue over the past three years. The Business Leader Growth 500 ranks the fastest-growing companies in the UK based on publicly available accounts filed with Companies House, with all firms included having reported annual revenues in excess of £3m in their most recent financial year.

LiveMore aims to provide solutions-based products designed around later life income streams and borrowing requirements. Some lenders offer mortgages lasting 30 years or more, even up to 40 years, to manage monthly payments. However, most lenders set age limits for both the start and end of a mortgage term, with a typical maximum age being around 70-80 for taking out a new mortgage and 80-85 for the mortgage term to end.

Interestingly, over 80% of LiveMore's borrowers are remortgaging. This trend could be attributed to the increasing number of over-50-year-olds applying for mortgages in the UK. The average age of first-time buyers in the UK has risen to 33, with many buyers having to wait until their late 50s to purchase a home.

In conclusion, LiveMore's innovative approach to later life mortgage solutions offers a breath of fresh air in the mortgage industry. By providing flexible equity release options, RIO mortgages, and a range of products to cater to different circumstances, LiveMore is helping older borrowers navigate the challenges of later life finance with confidence and ease.

1. The dynamic world of mortgage lending has seen the introduction of LiveMore's RIO mortgage, a unique product combining elements of a standard interest-only mortgage and equity release, designed for homeowners aged 55+.
2. LiveMore's equity release lifetime mortgage, launched in 2023, offers lower fixed interest rates compared to older schemes and provides borrowers with the option of making voluntary interest payments to control loan growth.
3. As the market for later life mortgages grows, LiveMore stands out as a solutions-based lender offering products tailored specifically to the unique needs of individuals aged 50 to 90, addressing income sources like pensions as "high quality" financing options.
4. With over 80% of LiveMore's borrowers remortgaging, and the average age of first-time buyers in the UK rising, it's clear that LiveMore's focus on later life finance, personal-finance, business, and property has made them a key player in the finance and banking sector.

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