LiveMore Capital has set up a social bond framework as part of its Environmental, Social and Governance (ESG) strategy.

Social bonds are used to finance projects which address social issues, providing investors with the opportunity to invest in positive social change.

LiveMore believes its mortgages perform a “vital social role” in providing solutions to borrowers who are unable to qualify for a traditional mortgage due to their age.

The lender argues that older people face effective discrimination from lenders who often rely exclusively on salaries in their affordability assessments, rather than considering a variety of income sources including pensions. Without more flexible financing solutions like LiveMore’s, older borrowers risk becoming mortgage prisoners or face having to sell their home.

LiveMore’s social bond framework has been developed based on the rules of the International Capital Market Association (ICMA), which promotes the sustainable development of the international capital and securities markets. The framework is supported by a second-party opinion by ISS Corporate Solutions Limited, certifying that LiveMore’s mortgage portfolio is a socially sustainable investment.

The lender is exploring further opportunities under the ICMA Green Bond and ICMA Sustainability Bond principles, with a view to launching products which help finance progress towards environmental and social sustainability in the near future.

Alexandra Hansmeyer, LiveMore’s head of legal, said: “Most mortgages don’t have a social angle but our products do. They are for borrowers that other lenders don’t want to lend to because they’re deemed too old, which is wrong on so many levels.

“We believe our social bond framework and future plans to expand on this with the likes of green mortgages are positive attributes for a modern, ethical mortgage lender. Our partnership with Trillion Trees is hugely important to us along with our commitment to sustainability and our carbon net zero target.”