Welcome to Advise Wise Market News, the news feed where you can find the latest from the later life market, including rate changes, product and process updates and market events.
Market news
LV= Criteria improvements
Product UpdateFrom Tuesday 7 May, LV= is implementing the following criteria improvements to the LV= Lifetime Mortgage – Lifestyle product:
Commercial Adjacency
Increased acceptance of properties adjacent to commercial premises: certain premises in adjacency will not be permitted such as prisons, petrol stations, industrial buildings/factories.
Above Commercial
Exceptional properties above commercial premises may be considered in high value areas where it is expected/common and where it is not on the floor directly above the commercial premises. The size and type of commercial premises will be considered alongside underwriting and surveyor review.
Relaxation of Flood Criteria
- Medium flood risk zones will now be considered
- The no flood risk period has reduced from 15 years to 5 years
In exceptional circumstances properties that have flooded in the last 5 years will also be considered subject to:
- Defences having been subsequently installed following the flood
- Not falling into a high flood risk zone on mapping
- Buildings insurance being available on normal terms
- No negative surveyor comments
Expansion of Listed Buildings Categories
Grade II* (England & Wales) and Category B (Scotland) properties can now be considered. Grade II and Category C properties also remain acceptable. Acceptance is subject to underwriting review and surveyor comments, particularly on the condition of property.
Single Skin % Increase
LV= can now consider single skin of up to 20% (previously 10%) of the overall property. The single skin element should be single storey and acceptance is subject to surveyor comments.
CCJ Limits
Unsatisfied and satisfied CCJs within the amount and timescale limits below are now permitted, subject to underwriting review. Unsatisfied CCJs must be cleared prior to completion or using the funds released. Underwriters may request further information on CCJs when evaluating a case and being within these limits is not a guarantee of acceptance.
£0-£99 - acceptable
£100-£499 - acceptable over/after 12 months
£500-£4999 - acceptable over/after 36 months
>£5000 - acceptable over/after 48 months
The date the CCJ was granted is the date used for the purposes of the timeline above.
Unadopted Roads – New Build Properties
Unadopted roads will now be permitted where a section 38 is in place confirming future council adoption.
Published: 7 May 2024
Holiday Buy to Let 5 year fixed rates withdrawal
Product UpdateFrom Thursday 9 May, Hodge is withdrawing all Holiday Buy to Let 5 year fixed rates.
Deadline for DIPs - 9am on 8 May
Deadline for app submission - 5pm on 8 May
Published: 7 May 2024
Maxi criteria changes
Product UpdateFrom Tuesday 30 April, more2life is making the following criteria changes on all Maxi Choice plans:
- The max loan amount increased from £1,500,000 to £2,000,000
- Properties with title restrictions on use, occupancy or re-sale are not acceptable
Flats
- Leasehold flats/maisonettes (85% of the LTV will be considered) are acceptable in blocks up to four storeys high with a lift. Where no lift is present, but the subject flat is located on the 1st or 2nd floor, this is acceptable subject to valuer’s comments
- Leasehold flats where the applicant also owns the freehold on a separate title and there are long leases granted on the other flat in the building. Both the leasehold and freehold title will be charged
- Leasehold flats where the flats in the block are all held on separate, long leases and the freehold is held jointly and equally by each flat. Will be considered up to two properties in the block and it should be confirmed that maintenance of the building is shared equally between the flats (no formal management company is required)
Are not acceptable:
- Leasehold flats/maisonettes in blocks greater than four storeys high
- Leasehold flats/maisonettes where the block does not have a lift and the subject flat is located on the 3rd or 4th floor
- Studio flats and basement flats
Proximity to Commercial/non-residential
Acceptable
- Properties adjacent to or in view of non-residential property can be considered, subject to valuer’s comments
- Properties adjacent to or in view of commercial property where there is no shared party wall between the properties can be considered, subject to valuer’s comments
- Properties in the vicinity of or in view of industrial property may be considered where there is strong evidence of demand
Unacceptable
- Properties above a non-residential, commercial or industrial property
- Properties adjacent (with a party wall) to a commercial property. Properties adjacent to or in view of licenced premises or food outlets
- Properties adjacent (with or without a shared party wall) to an industrial property
Flat roofs
- Flat roofs made of traditional materials (i.e. felt) are acceptable up to a maximum of 40% of the total roof area over habitable accommodation
- Flat roofs made of durable material (RBM, mastic asphalt, polymeric (FPO, TPE, EPDM, PVC), fibreglass, metal sheet -excluding corrugated metal, Zinc) are acceptable up to a maximum of 60% of the total roof area over habitable accommodation
- Roofs previously treated internally or externally with spray foam where it has been removed prior to application, subject to a report obtained from a suitably qualified professional to confirm the condition of the roof structure
Land
- Up to seven acres of land are acceptable, subject to no agricultural restrictions
- The valuation will be based on a maximum of five acres
Ground rent and service charge
- The max combined total service charge and ground rent payable is £1,000 or 1.5% of the property value
Ex-local authority
- Ex-local authority/Council houses or bungalow properties in an area predominantly in private ownership, equal to or greater than 60% and subject to satisfactory valuer’s comments are acceptable
- Ex-public sector flats or leasehold properties are not acceptable
Builders’ warranties
- The following warranties are no longer acceptable: Zurich Municipal New Build Guarantee, Principal, A Foundations 15 Certificate, Architect’s certificate
Published: 30 April 2024
Pure Retirement Announces a Major Refresh of its Emerald Range
Product UpdatePure Retirement has refreshed its Emerald range of lifetime mortgages, designed to offer consumers greater choice.
The updated Emerald range has been redesigned to feature a drawdown facility with a minimum drawdown of £500, a shorter seven-year early repayment charge, increased LTVs up to a maximum of 47%, and the removal of arrangement fees on both initial and further advance borrowing.
Free valuations will continue to apply across the range.
Criteria improvements include:
- Maximum age increased to 90 years old (89 +364 days on completion)
- Maximum initial advance increased to £1.5m
- No maximum property value
- Lending on flats and maisonettes
Published: 30 April 2024
Just product changes
Product UpdateOn Thursday 25 April, Just are making changes to part of the Just for you Lifetime Mortgage range.
- Introduction of a 5% cashback option on J3
- Introduction of 1%, 2%, 3%, 4% & 5% cashback options on J4
- Introduction of 4% & 5% cashback options on J6
Published: 24 April 2024
Capital Choice Plus relaunch
Product UpdateFrom 24 April, Capital Choice Plus will relaunch for single life applicants only.
Published: 24 April 2024
Standard Life Home Finance Horizon 650 launch
Product UpdateOn 24 April, Standard Life Home Finance is launching a new Horizon 650 plan.
KFIs will be available on the new plan from 23:59 on Wednesday 24 April 2024. This will be available to single life applicants only and will not be available on Horizon Interest Reward.
Published: 23 April 2024
Apex changes
Product UpdateFrom 24 April, the maximum age will reduce on Apex Ultra 3 & 4 to age 70yrs (currently 75yrs).
Published: 23 April 2024
LiveMore changes and new products
Product UpdateFrom 25 April, LiveMore is making the following changes:
- Reversion margin increasing from 3.25% to 3.50% (total reversion is moving from 8.47% to 8.72%)
- Launching New 100% Debt Consolidation products, with the same criteria as LiveMore 3 products but with 100% of the loan allowed to be debt consolidation
- The core LiveMore 3 products now allow 50% of the loan to be debt consolidation
Published: 22 April 2024
LiveMore launches new digital case-tracking tool for intermediaries
Process UpdateLiveMore has launched its new case-tracking tool, empowering you to monitor every step of your client’s application.
From mortgage application (FMA) to document review, valuation instructed and received, offer, solicitor instruction, and completion you can now easily track progress across seven key stages. These changes apply to all cases submitted from 5 March 2024.
Published: 19 April 2024
Pure Retirement increases LTVs on its Classic range
Product UpdatePure Retirement have continued to develop their Classic lifetime mortgages by increasing LTVs to 48% on the standard range, underlining the range’s flexibility and opening it up to more borrowers looking to access the equity in their homes.
- An applicant aged 70 can access LTVs up to 38%
- Applicants from age 80 can access LTVs up to 48%
The changes will be applicable on both new initial advances and further advance borrowing.
Additionally, existing Classic customers benefit with the removal of the arrangement fee on new further advances and can also access further advances up to the age of 90 for the youngest borrower, providing completion occurs on or before age 89 years +364 days.
These latest changes follow a recent package of enhancements from the lender, which means their Classic lifetime mortgages have no upfront fees, with no arrangement fee and free valuations.
Take a look at these recent updates on Pure Retirement’s website here.
Published: 15 April 2024
Just criteria changes
Product UpdateOn Friday 12 April, Just are making changes to part of the Just for you Lifetime Mortgage range:
- Increasing LTVs on J3 & J4 products
- Increasing Interest Servicing Discount for J3 & J4 products
- Removing of J1 5% cashback option
Published: 10 April 2024
Horizon 620 available for Joint Life applicants
Product UpdateHorizon 620 will become available for Joint Life applicants from Tuesday 9 April 2024.
Published: 5 April 2024
Removal of foreign income acceptance
Process UpdateLiveMore has paused accepting foreign income.
Published: 2 April 2024
Aviva introduces online applications for Aviva rebroke
Process UpdateYou no longer need to complete and submit a paper application form for rebrokes (switches), you can now submit applications through Aviva online platform in just three easy steps.
Published: 20 March 2024
Professional Mortgage criteria change
Product UpdateHodge have made a slight change to Professional Mortgage criteria. They now accept “sale of property” as a repayment strategy on interest only professional mortgages.
Published: 15 March 2024
Standard Life Home Finance broadens their Horizon Interest Reward proposition
Product UpdateStandard Life Home Finance have added a new 25% interest-served option.
You can save your clients thousands in compound interest when they opt to service 25%, 50%, 75% or 100% of the interest over an agreed term and Standard Life Home Finance will reward them with a discounted interest rate for the duration of their lifetime mortgage.
Read more here or register with Standard Life Home Finance to broaden your advice offering with Horizon Interest Reward.
Published: 12 March 2024
Pure Retirement quarterly report
General UpdatePure Retirement have published their new and enhanced quarterly Equity Release Market Insight report for 2024, featuring insight across their own loan usage data, customer and market trends, and specialist views from industry experts - in this edition, it's Equity Release Supermarket’s Mark Gregory.
Published: 7 March 2024
New Horizon plan
Product UpdateOn Saturday 2 March, Standard Life Home Finance is launching a new Horizon plan, Horizon 530, which will also be available on Horizon Interest Reward.
Published: 1 March 2024
Scottish Widows new products
Product UpdateOn 1 March, Scottish Widows is re-introducing LS10 and launching the new LS11 product.
Published: 27 February 2024
Hodge new affordability calculator
General UpdateHodge introduced a new, improved affordability calculator on their intermediary website.
The calculator now offers the following:
- The ability to run affordability across all Hodge residential products (the 50+, the RIO and the Professional)
- An improved back-end functionality, mirroring Hodge internal model, providing a more accurate result
- The ability to generate two maximum lending figures. One based on your customers maximum affordability, and the other based on the LTV
- The ability to download results as a PDF to share with your customers
- No need to register when using the calculator
Published: 21 February 2024
LiveMore increase to 100% debt consolidation
Product UpdateLiveMore have made a criteria change to allow 100% of the loan to be for debt consolidation purposes.
This only impacts LiveMore 3, which is available on RIO, Standard Interest Only and Standard C&I.
The debt consolidation criteria on other tiers (LiveMore 1, 2 and 4) is not changing.
Published: 20 February 2024
Maxi Choice Changes
Product UpdateFrom 17 February, more2life is making the following Maxi Choice changes:
- Maxi Super 1 and Super 2 will be relaunched
- The max age on all Maxi plans will be increasing from 84yrs to 89yrs + 364days
- The max loan will be increasing from £950k to £1.5m and the maximum property value will be uncapped (no max)
- Drawdown plans will also be relaunched
Published: 16 February 2024
L&G website improvements
General UpdateL&G have launched a new webpage where you can easily find out if your customer and their property meet L&G lending criteria.
You can find this using the new Lending Criteria tab on the adviser web pages or by clicking here.
By scrolling down the page, you will be able to:
- Access L&G adviser portal to create a KFI for your customer
- Submit an enquiry form for properties over £1m or loans over £300k, to check if an application would be acceptable
- Find property, applicant, and ownership lending criteria simply and quickly
- Download L&G Suitability Criteria with all the details in one place
- Find tips to help you progress your customers application to completion as quickly as possible
Published: 14 February 2024
Classic changes
Product UpdatePure Retirement are making changes to their Classic product range:
- Now arrangement fee free
Pure Retirement are removing the £500 arrangement fee on Classic products for both new initial loans and new further advances.
All pipeline cases with a £500 arrangement fee product will be honoured.
- Offer validity increased to 90 days
Offers are valid for 42 days as standard and Pure Retirement have now the ability to extend purchase cases to 90 days.
- Maximum age increased for further advances
Existing customers can now access further advances up to age 90* for the youngest borrower.
*(Completion must be on or before age 89+364 days for the youngest borrower).
Published: 13 February 2024
Flexi change
Product UpdateFrom 20:00 Monday 12 February, the Flexi Choice and Flexi Premier fee paid plans will no longer be available for new cases;
- Any current KFIs will be valid for 21 days from the date produced
- Flexi Choice and Flexi Choice Premier Fee Free plans are unaffected and will still be available
Published: 12 February 2024
Heritage changes
Product UpdateOn Monday 12 February, Pure Retirement are making the following changes to the Heritage Range:
On Heritage Special 3:
- Minimum age reduction to 60
- LTV changes
- Available to both Single & Joint Life
Pure Retirement are also removing the product fee from the range excluding the Freedom products.
Published: 8 February 2024
LiveMore Max loan change
Product UpdateLiveMore have changed the max loan on their lifetime mortgages to £750k.
Published: 31 January 2024
Standard Life Home Finance launches Horizon Interest Reward
Product UpdateThis new innovation allows you to offer your clients a discounted rate of up to 0.45% while still offering the same market-leading features that Horizon is known for. By making set monthly interest payments, Standard Life Home Finance reward your clients with a discounted rate, allowing them to save themselves thousands in compound interest over the duration of their lifetime mortgage.
Published: 29 January 2024
L&G Pricing structure changes
Product UpdateL&G are moving over to Individual Pricing for their Lifetime Mortgages with effect from 6pm on Friday 26 January. L&G portal will be unavailable from this time until the morning of Monday 29 January.
L&G Payment Term LTM and RIOs will remain on the existing “colour banded” pricing but L&G are making some changes to current rates and LTVs at the same time.
New pricing approach:
- From Monday 29 January 2024, L&G rates will be more tailored and therefore all the details you provide during the application process could influence rate
- The name of the Flexible LTM has changed to Interest Roll up Lifetime Mortgage (IRLM). Product features remain the same, including the ability to manage the roll up by making Optional Partial Repayments without paying an ERC. Only the name is changing
L&G Payment Term Lifetime Mortgage (PTLM) and Retirement Interest Only (RIO) products will continue on the existing pricing approach, with the following changes:
- Temporarily withdrawing the Payment Term Lifetime Mortgage Green variants
- Payment Term Lifetime Mortgage cases against flats or properties above £600k may be subject to a reduction in value before applying the LTV
Published: 26 January 2024
APEX changes
Product UpdateMore2life is making the following changes on the Apex product range:
- Increasing the LTVs on Apex Ultra 4
- Launching a new LTV tier: Apex Super 2
Published: 25 January 2024
Horizon 200 and 220 launch
Product UpdateStandard Life Home Finance has launched two new Horizon plans: Horizon 200 and 220.
- The minimum age on both plans will be 60 years
- The new plans will be available from Thursday 18 January 2024
Published: 18 January 2024
Plus product range
Product UpdateOn Friday 26 January, LV= is reintroducing the 1% cashback offering on their Plus product range.
The lending criteria matches that of the existing Plus range products.
Published: 18 January 2024
Lifestyle range changes
Product UpdateFrom Friday 19 January, the LTV’s will change on the Lifestyle range. Across various borrowing levels and age points, some LTVs will be increasing, and some will be decreasing.
For any KFI produced where the LTV is being decreased, the deadline for full submission of applications on the higher LTV is midday 2 February.
Cases that have already completed or are in the pipeline should be unaffected by the change. Any future additional borrowing requests would be made against the LTV available at that time.
Published: 16 January 2024
L&G product changes
Product UpdateOn Monday 8 January at 6pm, L&G are reintroducing their Flexible and Optional Payment Turquoise and Teal Lifetime Mortgages, with the following restrictions:
- Available for Single Lives aged 70 and over
- Available for Joint Lives aged 80 and over
Published: 8 January 2024
Lengthened offer validity period on Classic products
Product UpdatePure Retirement is extending the offer validity period for Classic purchase cases to 90 days.
Existing yet relevant Classic product features:
- Flexible pricing model with 21-day KFI rate guarantee
- Optional repayments via Direct Debit possible
- LTVs of up to 46%
Published: 8 January 2024
Changes to Capital Select Options
Product UpdateOn Monday 8 January, Canada Life is increasing LTVs on Gold Plus, Platinum and the Platinum Plus product. The Platinum Plus product is now available again to customers aged 60 – 90 years old.
Published: 8 January 2024
Horizon changes
Product UpdateFrom 5 January, Standard Life Home Finance is implementing the following Horizon changes:
- Relaunch of Horizon 600, available to both Single Life and Joint Life
- Relaunch of Horizon 620, available to only Single Life
- Existing Joint and Single Life cases on Horizon 600 and 620 will have access to further advances
- Further Advances on Horizon 620 will be available on Single Life cases only and will not be available to existing Joint Life cases
KFIs will be available on the relaunched plans from Friday 5 January 2024.
Published: 4 January 2024
L&G product changes
Product UpdateOn Wednesday 3 January at 6pm, L&G are making the following product changes:
- Removing restrictions on Flexible and Optional Payment Green product variants, to now be open to all ages
- Introducing new Payment Term Lifetime Mortgage Green product variants
Published: 4 January 2024
Capital Choice Midi relaunch
Product UpdateFrom 3 January, more2life is re-launching Capital Choice Midi and it will be available to both Single Life and Joint Life.
Published: 3 January 2024
Apex changes
Product Updatemore2life is launching Apex Series 9 on Tuesday 2 January, as a result the Series 8 plans have been withdrawn for any new business.
The Series 9 changes consist of:
- Rate decreases to Apex Plus, Super, Ultra 2 & 3
- LTV changes to Apex Super
- An increase in the maximum age on Apex Ultra 3 to 75
There are no changes to Apex Ultra Series 9
Additionally, a new higher LTV plan will be available – Apex Ultra 4.
The transitional rules for Series 8 cases are:
- KFIs on the current Series 8 plans are no longer available
- Applications on the current Series 8 plans can be submitted up until 22 January 2024
- KFIs are available on Series 9 plans from 2 January 2024
Published: 2 January 2024
Rate changes and deadlines table
View the tableAdvise Wise in the press
- 2024 surge in later life demand Published: 7 March 2024
- Advise Wise introduces online applications for Legal & General products Published: 13 February 2024
- Advise Wise adds feature to prioritise Early Repayment Charge period Published: 9 November 2023
- Introducing Advise Wise Market Events: a one-stop shop for all later life market events Published: 26 October 2023
- Advise Wise expands legal hub and extends reach to Scotland Published: 12 October 2023
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