LiveMore is bringing its interest-only products to the Scottish property market to provide alternative mortgage solutions for older borrowers hit by soaring inflation and the rising cost of living.
The specialist mortgage lender for over-50s said the expansion will enable Scottish customers aged from 50 to over 90 to access LiveMore’s full range of products, flexible terms rates and holistic affordability criteria.
Through its Retirement Interest Only (RIO) and Term Interest Only (TIO) products, LiveMore will be able to give borrowers in Scotland the opportunity to access the security and peace-of-mind of a longer-term fixed rate, release capital to enable them to continue living the life they love, get a mortgage when they would otherwise struggle or simply stay in their home for longer.
The company has identified Scotland as a high-opportunity later-life market, vastly underserved by the high street banks that typically overlook over-50s due to outdated affordability criteria.
The dearth of available solutions is evidenced by the Financial Conduct Authority’s (FCA) latest Mortgage Prisoners Review, which revealed that Scotland is home to 5,500 of the UK’s 47,000 mortgage prisoners – the third-highest concentration of all the UK regions.
LiveMore’s entry into the market will open up more opportunities for local brokers and borrowers alike – whether their goal is to reduce monthly payments by debt consolidation or to release equity to help their children get on the property ladder.
Customers will benefit from:
- Extensive range of fixed rates from five to 30 years
- Maximum LTV of 75%
Alternative options to either have to downsize or apply for an Equity Release mortgage, which many over-50s feel forced into despite it not being the best choice for all.
The expansion follows reports from Citizens Advice Scotland in December that the number of people seeking advice on mortgage arrears has increased by 38 per cent.
The network also predicted this will grow in 2022 now that Covid-19 support mechanisms like furlough and mortgage payment holidays have ended, further underlining the need for a solution that empowers consumers to take control of their finances.
Alison Pallett, Managing Director of Sales at LiveMore, said: “The very reason LiveMore exists is to bring more choice to later-life borrowers, so we’re absolutely thrilled to be expanding that remit to benefit consumers in Scotland.
“It’s a great injustice that perfectly capable people with stable finances are being pushed out of the market for the simple reason that they happen to be over the age of 50 and aren’t aligned to rigid and arbitrary criteria.”
She added: “We’re delighted about the impact our fresh approach to affordability will have on Scottish borrowers who’ve been frustrated by the shortcomings of existing offerings and look forward to developing relationships with local intermediaries to revitalize this untapped market.”
Richard Howes, Director of Mortgages at Paradigm, said: “Paradigm are extremely pleased to see LiveMore expand into Scotland with their proposition. This market area needs as wide a choice as possible, and it is really encouraging that LiveMore can now offer specialist retirement solutions for brokers and their later-life customers.
“This is providing more opportunity for over-50s to lengthen their time in their homes and a new conduit for brokers in the region to expand their relationships to include more customers.”
LiveMore’s products will be available in the majority of mainland Scotland, however the islands will be excluded along with the following postcodes:
- HS (Hebrides)
- KW15, KW16, KW17 (Orkney)
- ZE (Shetland)
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George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.