AT LAST!
AGE OLD PROBLEM SOLVED.
Life does not end at 55. So why should lending?
Many people over 55 struggle to find an affordable mortgage that enables them to buy a property and still have sufficient income to live their later life to the full. LiveMore, as the name suggests, specialise in helping them overcome this challenge. LiveMore were recently added to the TMA panel last year they would like to take this opportunity to tell you a little bit more about how they can help some of your clients.
LiveMore solely concentrate on providing Retirement Interest Only (ROI) mortgages to borrowers over 55. These products are transforming later life lending, but not all brokers are familiar with them, so it’s important to clear up any potential misconceptions.
Where have RIOs come from?
Following the Mortgage Market Review in 2014 mainstream lenders retreated from interest only lending, especially where the loan extended beyond normal retirement age. This meant older many borrowers struggled to access mortgage finance and RIO mortgages were quietly launched in 2018 to help address this issue.
RIOs have once again enabled borrowers aged over 55 to take an interest only mortgage beyond retirement. These mortgages have no defined term – they run until repaid from the sale of the property, or the borrower either dies or goes into long term care.
What’s so good about RIOs?
These products have many benefits for borrowers who are 55+. One is the fact they are no longer forced into accepting an expensive mortgage that only runs to retirement age. It also enables those at the end of their current Interest Only mortgage, and pressured to sell by the lender, to remain in their own home.
Do you need to gain extra qualifications to sell RIOs?
No. RIOs, unlike Equity Release mortgages, are classed as mainstream mortgages – because they work in exactly the same way. They are interest serviced, assessed for affordability at the outset and you do not need to hold an equity release qualification to advise on them.
Features of RIOs that make them particularly attractive:
- Affordability is assessed on the Interest Only payment which increases the client’s borrowing capacity
- They are also able to consider income that will continue beyond retirement age
- Their flexible human approach to underwriting means that they can help in cases where others can’t
Helping the borrowers’ other lenders can’t reach!
Do you have a client approaching the end of their mortgage term but unlikely to qualify with a traditional High Street lender? Maybe they are self employed or a business owner that intends to continue working past ‘normal’ retirement age?
These are some of the recent case scenarios that LiveMore have been able to help.
For more details on these cases or to view some of their other short case examples then click here.
LiveMore, can’t promise they will be able to lend on all cases, but they will certainly try!
