LiveMore has announced significant changes to its mortgage offerings, particularly benefiting borrowers over 40. The lender is now allowing unlimited overpayments on equity release mortgages, with the minimum payment reduced from £200 to just £25. This flexibility enables borrowers to make smaller, more frequent payments, enhancing their financial management options.
What changes has LiveMore made to mortgage overpayment policies?
LiveMore has removed the previous cap on the frequency of overpayments for equity release mortgages, allowing borrowers to make payments whenever they choose. The minimum overpayment has been lowered to £25, making it easier for borrowers to contribute additional funds without needing to wait until they can afford the previous minimum of £200. However, these overpayments must remain within the borrower’s early repayment charge allowance, which typically permits up to 10% per annum.
How does the ‘Age Next Birthday’ feature impact mortgage assessments?
The newly introduced ‘Age Next Birthday’ feature allows LiveMore to assess borrowing based on an applicant’s age on their next birthday, provided it falls within 60 days of the application. This adjustment is particularly relevant for borrowers approaching retirement age, as it can potentially increase their borrowing capacity.
What are the new loan-to-value (LTV) changes for mortgages?
LiveMore has also made adjustments to its loan-to-value assessments, enabling it to lend more based on individual circumstances. Notably, the maximum LTV for non-equity release mortgages has been increased from 80% to 85%. This change allows borrowers to access a larger portion of their property’s value, which can be particularly advantageous for those looking to maximise their borrowing potential.
What this means for borrowers over 40 in the mortgage market
These changes are particularly significant for borrowers over 40, as they can now access more flexible mortgage options. The ability to make smaller overpayments and the increased LTV means that individuals in this age group can better manage their debts and secure larger loans tailored to their financial situations. As lending criteria evolve, LiveMore’s adjustments provide more options for those who may not fit traditional lending profiles.
Frequently asked questions
What is the minimum payment for overpayments now?
The minimum payment for overpayments on equity release mortgages has been reduced from £200 to £25.
How does the ‘Age Next Birthday’ feature benefit borrowers?
This feature allows borrowers to be assessed based on their age on their next birthday, potentially increasing their borrowing capacity if they are close to retirement age.
