The product provides the certainty of a long-term fixed rate with the option to redeem after five years ERC free
Later life lender LiveMore has launched a new mortgage product designed for borrowers aged 50 to 90-plus who are concerned about the uncertainty of rising interest rates.
The lender’s 5+5-year fixed rate mortgage provides the certainty of a 10-year fixed rate with the flexibility for borrowers to redeem the product after five years if they wish with no early repayment charges (ERCs). In the first five years, the ERCs reduce annually by 1%, from 5% to 1% in the fifth year, but for years six to 10, there are no penalties.
Rates start at 7.04% and are available across LiveMore’s interest-only and capital and interest product ranges, and the product is portable, subject to certain criteria at the time of application.
“This new product is essentially a five-year fixed rate with the additional benefit of up to another five years fixed, which brings peace of mind if rates continue to rise,” said Leon Diamond (pictured), chief executive and founder at LiveMore. “But if rates go down, there is the option to redeem the mortgage after five years with no early repayment charge, giving the borrower the freedom to move onto a better rate.”
“We have come out of a low interest rate environment into territory not seen for almost a decade and a half. The markets are pricing in several more rises and no one can guarantee that rates will be lower in two years’ time. This product helps with the dilemma of whether to fix longer or shorter due to its flexibility.”
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