LiveMore Capital RIO Mortgage 5-Year Fixed (75% LTV)

RIO - 5 Yr Fixed (75% LTV)

Type Fixed
Rate 6.89%
APRC 7.00%

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Incentives:

Free Valuation
Legal Fees Contribution

Offers:

Age Range 50+
LTV Range 60-75%
5-Year Fixed Interest Only Mortgage
10%pa Overpayment Allowance
Free Remortgage Legals Package

Background

LiveMore are a specialist mortgage lender who launched in 2020. They are already established as a significant lender in the Later Life market by developing a range of Retirement Interest Only (RIO) mortgages for homeowners over the age of 50.

LiveMore have carefully researched and gained an understanding of people’s income and spending habits through retirement. These new affordability measures means that LiveMore are able to tailor their mortgage lending accordingly and more flexibly than traditional high street lenders.

By simplifying the application process, LiveMore are gaining a growing reputation as a specialist Retirement Interest Only Mortgage lender.

The LiveMore RIO mortgage helps borrowers make monthly interest-only payments on a loan which runs over their lifetime and only requires repayment upon death or them moving into care. Therefore, the repayment vehicle permitted under this RIO mortgage is the sale of the property itself.

Eligibility

LiveMore’s range of RIO mortgages are specifically designed for homeowners over the age of 50 and require access to the equity in their property to enable them to enhance their lifestyle in retirement.

The LiveMore RIO can be used either as a remortgage vehicle or can be used to assist with a house purchase.

These RIO plans are available on a single or joint life basis with the minimum application age being 50. LiveMore have no upper age limit at application.

LiveMore have a sensible, yet pragmatic approach to retirement lending. They will base affordability on income levels, and in the case of joint incomes, they will ensure that should one party die, the survivor can still manage on their sole income.

The minimum loan on this Retirement Interest Only Mortgage is just £10,000 with a maximum of upto £1.25m. For RIO mortgage applications above £1.25m, please call the Equity Release Supermarket team on on Freephone 0800 088 5898 to check qualification and request your bespoke quotation.

LiveMore will consider various forms of income towards their assessment of affordability.

Types of acceptable income they will need to evidence include income from employed or self-employed who are at a pre-retirement age. Once in retirement, pension income, state and private pension, annuities, drawdown plans, and SIPPs are all considered along with any rental income and investment income.

Current expenditure will also need to be evidenced. LiveMore will then project future expenditure, based on your information and data provided by the Office of National Statistics.

Affordability is then assessed on the applicants ability to maintain the interest only payments on the RIO mortgage. This is due to the nature of it being a RIO product that is designed to run for the life of the loan and the last surviving partner.

LiveMore’s minimum property valuation on their RIO mortgage is £100,000 (ex-local authority flats £200,000), which must be the homeowner’s main residence and located within England or Wales. There is no maximum property value limit.

Any adverse credit such as arrears, defaults and CCJ’s can be acceptable, dependent upon the amount, longevity and level of credit registered. Please contact the Equity Release Supermarket team on Freephone 0800 088 5898 to check for eligibility.

Features

A retirement interest only mortgage (RIO) provides an initial cash lump sum for either capital raising purposes or towards a house purchase. In return the borrower makes monthly payments of interest only back to LiveMore, thus maintaining a level mortgage balance throughout its term.

The RIO mortgage has no maximum term, and it will run for the duration of the last surviving homeowner. No repayment strategy is required, such as an endowment policy, investment product or the need to make any capital repayments.

LiveMore offer a suite of products than vary in nature between their loan-to-value (LTV) and length of the fixed interest rate offered. LTV’s can vary between 60% upto a maximum of 75%. A combination of this and the length of the fixed rate term, will determine the interest rate available.

A comprehensive suite of interest rates are available with shorter 5 and 7 years fixed, with upto longer 10, 20 or even lifetime fixed interest rates.

Unlike equity release schemes, there are no protections in place with this RIO mortgage product if the borrower has difficulty making payments. This is a residential mortgage which means that there are no safeguards if something unexpected takes place, preventing the homeowner from being able to make payments. So, to make use of this product, homeowners must be confident that their income will stay sufficient & constant enough to meet their payment obligations.

The homeowner must make all monthly interest payments as they fall due until the RIO mortgage finishes. This means that the homeowner could put their home at risk if they do not keep up with payments.

If a single applicant passes away before the end of the term, the mortgage will still have to be repaid, usually by sale of the property. On joint applications, the mortgage will continue to run in the name of the survivor.

LiveMore are not members of the Equity Release Council and consequently their plans don’t have the code of conduct applicable like other equity release schemes such as the no negative equity guarantee.

Early repayment charges (ERC’s) are fixed over a number of years dependent upon the length of the fixed interest rate term taken.

Options

This LiveMore RIO Mortgage enables any homeowner to spend their tax-free cash as they wish, but unlike roll-up equity release schemes RIO’s have the ability to make monthly interest-only repayments to control the future balance.

LiveMore will accept applications which are based on retirees house purchasing, remortgage business and on unencumbered properties.

Voluntary overpayments of upto 10% per annum are permitted on this RIO mortgage without penalty.

Additional borrowing may be available with LiveMore, but availability and approval is not guaranteed. The amount available is directly related to the homeowner’s ability to afford the loan amount and will therefore have the same affordability verification process.

A 6-month payment holiday option may be considered upon request, should you find yourself in financial difficulty due to an unexpected change in circumstances.

LiveMore will not make an early repayment charge if you need to redeem the loan earlier than expected due to death of a partner, or move into long term care.

All LiveMore RIO mortgages offer fixed term interest rates within its product range. However these are subject to change, hence contact the Equity Release Supermarket team on Freephone 0800 088 5898 for the latest interest rates on offer.

Practicalities

Retirement Interest Only Mortgages are ideal for the homeowner who wants to only make monthly interest payments over their lifetime and are happy to provide proof of affordability. With this product, the homeowner is able to make interest only payments for the rest of their life.

RIO mortgages will ensure the balance will always remain the same as it started, assuming repayments are maintained. This strategy is ideal for those looking to protect and maximise their inheritance, or looking to retain as much capital as possible before taking equity release at a later date.

This product is ideally suited for those looking for an interest-only mortgage and do not want to downsize, but remain in their home.

RIO’s can prove useful for homeowners who aren’t quite ready for equity release, and would prefer to take themselves to a point in the future when they feel they are a better age, or wish to stop making repayments.

Alternatively, where homeowners can’t get a mainstream mortgage, or even where an interest-only mortgage needs repayment, the LiveMore RIO mortgage can provide an excellent solution.

Another proven concept for RIO mortgages is they can be used to effectively offering an interest-only bridge facility into retirement. Maybe this is to a future point in time where a repayment vehicle becomes available, such as a tax-free lump sum from their pension, or drawdown by crystallization of pension funds.

*the interest rate quoted above is a 5-year fixed rate
**the minimum age for this product is 50 years
***free legals are available for remortgages only

To obtain further information or to request a quotation on the LiveMore 5-Year Fixed Retirement Interest Only Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 088 5898.

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Retirement Interest Only Mortgage - Rate & Details

RIO - 5 Yr Fixed (75% LTV)

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Background

Eligibility

Features

Options

Practicalities

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