Good News for Over-50s – LiveMore Slashes Lifetime Mortgage Rates

LiveMore has made a major announcement: a significant reduction in later life mortgage rates across all its products, by as much as 0.29%. This decision comes at a time when confidence in the housing market is showing signs of improvement, a sentiment echoed by Tim Wellard, the product manager at LiveMore.

What Does This Mean for You?

1. A Wide Range of Mortgages Affected

LiveMore, known for its focus on borrowers aged between 50 and 90+, has made these rate reductions applicable to a diverse range of mortgage options. This includes:

  • Retirement Interest-Only (RIO) Mortgages
  • Standard Interest-Only Mortgages
  • Standard Capital & Interest Mortgages
  • Lifetime Mortgages

2. Significant Rate Drops

Here’s a closer look at how the rates have changed:

  • The five-year fixed standard interest-only mortgage rate has been reduced by 0.23%, now standing at 6.15%.
  • RIO mortgage rates now begin at 6.30%, a drop from the previous 6.53%, in the fee-paying range. For the fee-assisted range, the rates have fallen from 6.50%.
  • Equity release rates have seen a decrease of 0.10%.

3. Longer-Term Mortgages Also Benefit

For those looking at longer-term options, the news is equally good:

  • The 5+5-year and 10-year fixed-rate mortgages have been lowered by 0.18%.
  • The new rate for the 5+5-year fix starts at 6.60%, and for the 10-year fixes, it’s from 6.20%.

4. The Special 5+5-Year Fixed Rate Mortgage

This particular mortgage offers a blend of stability and flexibility – it’s like having a 10-year fixed rate, but with the option to redeem the product after five years without incurring early repayment charges.

Why This Matters

Tim Wellard’s commentary sheds light on the broader market trends. The stabilization of swap rates – the rates at which financial institutions lend to each other – signals a growing confidence in the housing market. This is crucial as it impacts mortgage rates and, ultimately, the pockets of borrowers.

Supporting More Borrowers

The rationale behind LiveMore’s decision is clear: to support more borrowers. Following two exceptionally strong months, LiveMore is eager to extend this momentum by making mortgages more accessible and affordable to a broader range of borrowers, particularly those in the later stages of life.