New product combines five-year fixed term with penalty-free exit after three years
Later life lender LiveMore has launched a new fixed rate mortgage designed for borrowers aged 50 to over 90, aiming to offer a blend of rate security and repayment flexibility.
The new 3+2-year fixed rate product allows customers to lock in rates for five years while providing the option to exit after three years without incurring an early repayment charge (ERC). The ERCs only apply during the first three years on a tapered scale: 5% in year one, 4% in year two, and 3% in year three. No penalties apply in the final two years of the term.
Initial pricing for the product starts at 5.58%, positioned as a competitive option for borrowers seeking long-term stability with short-term flexibility.
“This product gives borrowers the confidence of a longer-term fix, with the flexibility to reassess their situation after just three years,” said Paul Lewis (pictured left), sales director of mortgages at LiveMore. “It’s ideal for customers who want stability now but don’t want to be locked in if market conditions improve.”
At the same time, LiveMore has reduced rates on its equity release products by as much as 65 basis points, specifically at higher loan-to-value tiers, in a move aimed at enhancing the value proposition for homeowners seeking to unlock equity.
Industry urged to redefine ‘later life lending’
LiveMore is urging the financial services sector to revisit how ‘later life lending’ is defined and communicated. The lender argues that the term is too often conflated with equity release, limiting the scope of advice and misrepresenting the full range of options available to older borrowers.
“Equity release has dominated the narrative for too long,” said Leon Diamond (pictured right), founder and chief executive of LiveMore. “Later life lending is not one product. It’s about understanding people’s full financial picture starting in their fifties while earning, but also as they move into and through retirement.”
The company believes the current interpretation of later life lending is too narrow, excluding options such as retirement interest-only (RIO) mortgages, capital and interest repayment loans, and standard interest-only products. It contends that a broader definition would allow for more accurate advice and better outcomes.
“We’re not saying equity release doesn’t have a place,” Diamond added. “We’re saying it’s just one tool – not the whole toolkit. Older borrowers deserve a lending landscape that reflects their real lives, not outdated assumptions.”
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