Mortgage Solutions understands 14 members 0f staff were involved in the restructure.
A spokesperson for LiveMore, said: “Like many other lenders in the market we have had to make the difficult decision to restructure our business in line with the difficult market conditions.
“While this unfortunately means the loss of some staff in the short term, this carefully considered decision means that we will come out of this difficult period stronger and ready for our next phase of growth.”
Meanwhile, More2Life director of sales Les Pick (pictured) and two other members of the business development team will exit the business, with the rest of the sales team unaffected, confirmed More2Life owner, Key Group.
Mortgage Solutions understands the process has been handled in “the best possible way” and with no “ill will”
A Key Group spokesperson confirmed the staff left “due to the changes in business volume as well as support demands”.
The telephone team will pick up the business development teams’ responsibilities, headed up by newly-appointed sales director, Mike Millar, previously More2Life strategic account director.
In a statement, More2Life said: “The September mini Budget has caused significant issues in the UK property finance markets – including the later life lending sector. Therefore, we have had to restructure our business development team to better support the levels and type of business that we are processing.
“As part of this, Les Pick, director of sales, left the business and we wish him all the best as he continues with his career.
“As a business, More2Life remains committed to supporting advisers with an innovative proposition, technological expertise and market insights. We want to thank Les for what he has contributed over the last year he has been with us.”
Last month, Key Later Life confirmed it had laid off 13 per cent of its workforce across a range of departments in March, which it blamed on the mini Budget in September.
‘Appropriately-sized for the market’
Key’s chief executive Will Hale said at the time, the final quarter of last year was a challenging one and as a result the firm had to re-evaluate the size of its business to ensure it is “appropriately sized for the market as it is today”.
“However, following the disastrous mini Budget, we saw a sudden increase in rates and a contraction of loan-to-values that saw lower lending volumes – although demand remained strong,” said Hale.
He said he expected H2 to be more buoyant but it is likely to be below the peaks seen in 2022 so the firm was obliged to align headcount to business volumes, adding that the outlook for the later life lending sector remains positive.
In January, Leeds-based advice firm Age Partnership reportedly cut nearly 10 per cent of its 300 staff, also blaming the mini Budget, with another large advice firm rumoured to have cut staff more recently in other unconfirmed reports.
Market dropped 29 per cent year-on-year
Equity Release Council statistics for Q1 showed the toughening climate with a 19 per cent dip in customers from the previous quarter and a drop of 29 per cent year-on-year.
Total lending of £699m made Q1 2023 the quietest by this measure since Q2 2020, with new loan sizes also dropping annually by 34 per cent to £61,785, the smallest in six years.
David Burrowes, chair of the Equity Release Council, said: “Suitability and timing are everything when it comes to deciding to release equity. For some, it has made sense to continue with their plans. Other would-be customers have evidently been biding their time to see what interest rates do next.”
Paul Saroya, director of award-winning advice firm Viva Retirement Solutions said it’s a “tough market right now” with rates increasing almost daily, repelling borrowers seeking finance for aspirational reasons like home improvements and holidays.
He said: “We are seeing many more ‘needs-based’ reasons for loans and, sadly, there are many people that fall through the holes as LTVs decrease too. What we would like to see are funders holding steadfast and giving today’s clients hope.”
