Change aims to make the products more appealing to borrowers
Mortgage lender LiveMore has shortened early repayment charges on its long-term fixed rate mortgage range for the 50- to 90-plus age group, making the products more appealing to borrowers.
“We have shortened our early repayment charges, so borrowers are not tied in for the whole term of a longer-fixed rate, which often puts people off taking them out,” Alison Pallett (pictured), managing director of sales at LiveMore, said.
The new ERCs have been shortened on LiveMore’s 10-year, 20-year, and fixed for life products.
“The 10-year fixes are really gaining in popularity, and we wanted to make this product more appealing. People want the security of knowing their monthly payments won’t rise for the next decade and now they know they can redeem their mortgage penalty free after just five years,” Pallett pointed out.
“Long-term fixes are a sensible option for many at the moment as rates are rising and will continue to increase, at least for the foreseeable future. All of our products are portable and come with an option to overpay by up to 10% each year, customers can even take a six-month payment holiday.”
Read more: LiveMore revamps product range.
Borrowers now have the option to end the mortgage early with no penalty if their circumstances change or they wish to refinance to another lender.
If the borrower experiences a major life event, such as having to sell the property due to the death of a partner or moving into long-term care, there are no early repayment charges at all.
“We know circumstances change and if customers wish to redeem their mortgage earlier than the fixed rate term, these new ERCs are much more palatable,” Pallett said.
LiveMore said all ERCs will be visible on mortgage sourcing systems.
