LiveMore has increased the loan to value (LTV) ratio on its standard interest-only mortgages from 70% to 75%.
The lender has kept its rates the same, with the result that people can borrow more; they will be getting a 75% LTV mortgage at the same rate that applied to 70% LTV.
The 5% LTV increase applies across LiveMore 1, 2 and 3 standard interest-only products. It brings the LTV ratio in line with the 75% LTV that already applies to LiveMore’s retirement interest-only products.
REASONING
The LTV increase is aimed at widening LiveMore’s customer base by making its mortgages available to a broader range of people over 50.
LiveMore has recently removed all upper age limits from its criteria, including lending to people who are over 90. Earlier this month it also significantly reduced the minimum deposit, or equity, that borrowers are required to have in their property when applying for a standard interest-only mortgage – with equity limits set into four clear bands across England, mainland Scotland and Wales.
“For too long, the over 50s have been treated as second-class citizens where finance is concerned”
It will lend from £20,000, up to £1.5m (up to 75% LTV), and to £2.5m (up to 60% LTV).
Samantha Ward, head of proposition strategy and development at LiveMore, said: “Regardless of age, we are committed to finding a variety of solutions for a wide range of borrowers. For too long, the over 50s have been treated as second-class citizens where finance is concerned.
“In fact, many people are more than financially capable of maintaining payments on their mortgage well into retirement, so we at LiveMore are finding ways to enable them to access the funding they need.
“We are finding more than ever that borrowers are reviewing their financial circumstances to help support them or their families in later life. Borrowers may want to help their children or grandchildren to get onto the property ladder for example, perhaps release funds for home improvements or plan for inheritance tax, or maybe just improve their standard of living – and our mortgages enable them to do that.”
