Livemore, helping the borrowers’ other lenders can’t reach
To many mortgage brokers, interest only mortgages for the over 50s is still an unfamiliar product. In this article, our Sales Managing Director, Alison Pallett tries to change the misconceptions surrounding RIO mortgages and give some helpful advice.
RIO – how exactly does it help?
Well to start with you don’t need to be retired to qualify for a Retirement Interest Only Mortgage, just 55 years of age or above – there is no maximum age limit either.
Nor do you need to hold an Equity Release qualification to work with clients in this section of the market.
If I think about the customers, we have been able to help, I’d say focus about four key areas to look for these customers
1. Interest Only Term end
2. Customers who don’t want or don’t qualify for Equity Release
3. Mortgage Prisoners – stuck on SVR in mainstream lenders back books
4. People looking to help family members to get onto the housing latter or people looking to help themselves if they have a potential inheritance tax liability.
Without going into too much detail, RIO can unlock a lot of customer opportunity for the savvy broker who is working their client bank.
LiveMore, because we’re always trying to find a way to say yes
Unlike more traditional lenders we really understand later life lending.
For instance, we understand that many people continue to receive income, often from several sources, after the normal retirement age – it may even be through a part time job, or consultancy nature. It may be combined with state or personal pensions.
We will consider all plausible income streams and for joint applications we may accept life cover to bridge any affordability gap upon the death of one borrower.
We have no maximum age, a range of products from 5 years to lifetime fixed and our revolutionary Ongoing Care Fee programme. This means we will pay 0.55% gross paid after completion, plus an additional 0.13% gross per year for up to 15 years. There really are a huge number of reasons to choose LiveMore!
And finally,
I know that many brokers want to get into this part of the market and rightly so, we are an aging population after all, so what’s my message?
1. Visit our website www.livemorecapital.com – there is loads of information to help you get started and you can also view some of the recent real life cases we’ve been able to help in our case studies section.
2. Register on our Broker Portal and then you can run Maximum Borrowing
Calculations and see just how easy this first stage can be.
3. Call us on 0203 0114 991 or email us at sales@livemorecapital.com – we really are here to help.
4. Follow us on LinkedIn @LiveMore Capital – we are always posting interesting articles there.
We believe that interest only mortgages for the over 50s will become increasingly important, so whilst we can’t promise we’ll be able to accept every case you have, you can be sure that we’ll give it our best shot – try us out and see how we can help you provide the best possible outcomes for borrowers.
