The funding facility supports LiveMore’s retirement interest-only (RIO) mortgage launch, and its term-end interest-only mortgage, offering a longer fixed term rate, calculated on affordability, allowing borrowers to stay in their homes for longer.
The loan allows customers to make capital repayments of up to 10 per cent a year. A lower age limit of 50 is in place and the maximum borrower age accepted is 80.
LiveMore targets the under-served later life market sector, lending up to 75 per cent loan to value (LTV) and offering an alternative to equity release. Lender data suggests its borrowers have an average age of 68 while the eldest is 92, with 35 per cent of those over 65 still working well past the state retirement age. Joint and single borrowers are split evenly, with single female borrowers constituting more than a third.
The funding comes against a backdrop of growing regulatory pressure, as authorities such as the Prudential Regulatory Authority (PRA) continue to encourage providers to broaden choice for over 50s. The FCA’s November 2021 study revealed there are 47,000 mortgage prisoners in the UK, and with inflation rates now at a 30-year high, more over-50s could fall into this category, said the lender.
Jennifer Wallaert, managing director, head of specialty finance, Natwest Markets, said: “Natwest is pleased to support LiveMore in the next stage of its growth with the launch of its term end interest-only mortgage product. This transaction demonstrates our expertise and capabilities in arranging a tailored secured senior funding warehouse as well as a hedging solution to a specialist lender offering a longer-term fixed rate mortgage product to support later life borrowers in the UK.”
Leon Diamond, CEO of LiveMore added: “We are thrilled to be working with Natwest markets to support our growth, so we can continue to serve the often forgotten over 50s market.
“Having the support from Natwest Markets means together we can help mobilise the industry around our mission to help the over 50s have genuine control of their financial lives. We have listened to the regulators and our customers, and with the support of this relationship, we can continue to provide options for later life borrowers under-served by high street lenders.”