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
Changes to Just for You Lifetime Mortgage range
On Monday 23 December, Just are making changes to their Just for You Lifetime Mortgage range. These changes include:
- Market leading maximum LTV of 58.4% on J6 product from age 82 (Single Life).
- Simplified product range by removing some cashbacks.
- Rebalanced the LTV position by offering Single Life and Joint Life on our J4 & J6 products.
- Revised ISM discounts for those who service interest of more than 25.01%, with J6 still offering a discounted rate of 6.99% MER.
LV= Plus Range product changes
LV= are temporarily reducing the maximum LTVs available across their Lifetime Mortgage Lump Sum+ and Lifetime Mortgage Drawdown+ products (cashback and non-cashback).
On the Drawdown+ product, the Platinum and Platinum Plus products will be temporarily removed for new business.
Any quotes you wish to obtain on our current LTV’s should be produced no later than 4pm on Thursday 5 December.
Horizon plans withdrawal
From Tuesday 3 December, Horizon and Horizon Interest Reward 600, 620 and 650 plans will be temporarily withdrawn from all new business. Further Advances are also being withdrawn on the 600-650 plans, but Drawdowns are unaffected.
Apex max age increase
With effect from 4 December, more2life is increasing the maximum age on standard Apex plans only from 84 to 95.
This change doesn't apply to Apex Interest Reward, which is retaining its maximum age of 84.
Pure Retirement survey and prize draw
Pure Retirement is conducting a survey to further understand the current equity release market further. On completion, you'll be entered into a prize draw to win a £100 High Street voucher. The survey closes on December 20th.
Canada Life changes conveyancing provider
Canada Life are changing conveyancing provider from Konexo to Enact Conveyancing.
Pipeline cases
- To ensure that the conveyancing on your client’s existing cases isn’t impacted by the change, any offers that have already been issued will continue to be managed by Konexo.
- Any cases which go to offer on Friday 29 November, will also be managed by Konexo.
- You’ll still be able to access the Konexo portal to get case updates.
Transitioning to Enact
- Enact will manage all Offers which are issued on or after Monday 2 December.
- You’ll be able to see case updates on the Enact portal. If you’re not already registered, you can contact Canada Life to complete your registration
E: hf-support@canadalife.co.uk
T: 0800 068 0212
more2life plan withdrawal
From Friday night 29 November, more2life will be temporarily withdrawing its Capital Choice Midi and Capital Choice Plus plans.
Loughborough BS new product launch
The Loughborough Building Society have launched a new product, Prime Plus Borrowing 5year fixed, with 60% LTV and free valuation, available to applicants who are aged 80.
Capital Select Options changes
With effect from Wednesday 27 November, Canada Life is increasing the LTVs on Platinum and Platinum Plus.
LV= sales desk phone-line availability
LV= Equity Release Sales Desk phone lines will be closed on Tuesday 3 and Wednesday 4 December. The phone line will re-open on Thursday 5 December.
- For urgent queries, please email equityrelease.sales@lv.com and they will contact you at the earliest.
- For queries on in-progress application, please call 0800 028 8974 option 2.
- For a servicing case, call 0800 028 8974 option 3.
- For issues with portal access or password reset/club added to your profile, call 0800 028 8974 option 0.
Aviva launches new Lifestyle Max lifetime mortgage
On Monday 25 November, Aviva has launched its new Lifestyle Max lifetime mortgage.
With up to 14% higher LTV than the existing Lifestyle Flexible Option lifetime mortgage and a 4-year ERC term, Lifestyle Max gives your clients a way to release higher proportions of equity from their home.
LV= product changes
With effect from 22 November, LV= is temporarily withdrawing the LS12/DD12/LS12 1%CB/ DD12 1%CB products.
LiveMore criteria changes
With effect from 22 November, LiveMore is increasing their Loan to Value on Interest Only (and some Capital & Interest products) from 70% to 75, across their whole Interest Only range.
Aviva shortened their Fixed Early Repayment Charge Term
Aviva is shortening their fixed early repayment charge (ERC) term on their lifetime mortgages. From 20 November they have:
- Shortened the fixed ERC term from 15 years to 10 years for all new customers
- Improved the term for their existing 15,000 customers with a fixed ERC by reducing it to 10 years from their completion date(s)
Scottish Widows product changes
From Friday 22 November, Scottish Widows is withdrawing its LS12 product.
Horizon Interest Reward
Standard Life Home FInance announced Horizon Interest Reward will be returning on 16 November on both fee-free and fee-paid plans.
KFIs will be available from 00:01 on Saturday 16 November 2024.
LV= Lifetime Mortgage lending criteria updates
From 7 November, LV= is making the following changes to their lending criteria.
Updates to Lifetime Mortgage Lifestyle range:
- Commercial usage at property now permitted (with conditions attached)
- Satisfied CCJ limits removed
- Bankruptcy and IVAs cleared 3+ years ago now considered
Updates to Lifetime Mortgage Plus range:
- Maximum property value increased to £5 million
- Flat roof maximum increased to 100% (with conditions attached)
Please note that all changes are subject to an underwriting review and satisfactory valuation.
For more information, please get in touch.
Capital plan maximum age change
From 5 November, more2life is reducing the maximum age for Capital plans to 84.
Canada Life product changes
From Monday 4 November, Canada Life is decreasing LTVs on PLatinum and Platinum Plus.
Apex Interest Reward available whole of market
From 4 November, more2life are making their Apex Interest Reward plans available to the whole of market.
The Interest Reward variant will be available on the current Apex plans (880 and 900) with the customer having the option to pay either 25%, 50% or 75% of the interest over a term of 15 years to earn a discount to the interest rate. This discount is removed at the end of the term regardless of whether payments have been maintained.
Rate discounts:
- 25% = 0.30% discount
- 50% = 0.55% discount
- 75% = 0.75% discount
Just's Care Report 2024 – why social care planning remains urgent
Just's latest edition of Care Report - Groundhog Day, provides key insights into the challenges of social care funding. It highlights the need for clients to plan ahead and for you, as advisers, to guide them through the complexities.
Pure Retirement offers and valuations changes
Pure Retirement are introducing a new method for sending customer offers and valuations, launching on November 4th. From this date, offers and valuations will no longer be attached to messages. The new system is more secure and fully encrypted.
The new email will include a Microsoft or Google sign in button, and you can use a one-time passcode as an alternative. Then you'll be able to download your documents in a fully secure way.
Loughborough BS new product launch
On Tuesday 29 October, The Loughborough Building Society has launched a new product: In Retirement Fixed 2 Year.
Tailored Lifetime C3 3% Cashback launch
On 25 October, more2life is launching Tailored Lifetime C3 3% Cashback.
Horizon Interest Reward withdrawal
From Thursday 24 October, Standard Life Home Finance is temporarily withdrawing Horizon Interest Reward. They expect Horizon Interest Reward to be back soon. Normal pipeline rules apply on existing pipeline Horizon Interest Reward cases. The application deadline for Horizon Interest Reward KFIs is as follows:
- 31/10/24 for KFIs created between 03/10/24 - 10/10/24
- 04/11/24 for KFIs created between 11/10/24 - 14/10/24
- 08/11/24 for KFIs created between 15/10/24 - 18/10/24
Pure Retirement's portal update
Pure Retiremet are planning a release into their LIVE system on 24 October 2024 at 18:00 hrs. They expect this release to complete by 21.30hrs.
Please note that during this release you will be unable to generate KFIs or submit online applications through the Pure portal.
Hodge mortgages changes
From 16 October, Hodge are making the following changes changes:
- Introduction of 60% 2 year 50+ rates
- Removal of most fee free products
- Widening out of Hodge Resi product range
- Reduction of several 75% LTV rates
- Retention Holiday Let ranges have been reduced
- This launch will tie in to the rebrand of 50+ to Hodge Resi Retire (50+) so all 50+ products will be renamed
Maxi Zero available to whole of market
more2life have made Maxi Zero plans available to the whole market.
Interest Reward product change
From 11 October, Standard Life Home Finance is reducing rate discounts on Horizon Interest Rewards.
Applications on the current discounted rates can be submitted by Thursday 31 October.
Canada Life product changes
From 10 October, Canada Life have decreased LTVs on Platinum Plus.
For KFIs produced on prior terms, the application needs to be submitted before 5pm on 17 October.
L&G LTV reduction on PTLM
From Thursday 10 October, Legal&General is reducing LTVs on PTLM.
more2life Maxi Choice 7-year ERCs
more2life's standard Maxi Choice plans have now moved over to 7-year fixed ERCs.
New Heritage Cashback options
From Monday 7 October, Pure Retirement is introducing new cashback options with Heritage Lifetime Mortgages. Applicants from age 60 can now benefit from a wider range of cashback options of up to 5% on selected products.
Just cashback variants changes
On Tuesday 1 October, Just is making the following changes to part of the cashback variants in the Just for You Lifetime Mortgage range:
- J1 -
- J2 - 1%
- J2.5 - 1%
- J3 - 2%, 4%, 5% & £600 (Exclusive)
- J4 - 1%, 2%, 3%, 4% & 5%
- J6 - 3%, 4% & 5%
In addition, the age range on the J3 £600 exclusive cashback deal has been improved and now is available to those aged 55-85.
The Loughborough Building Society launches a new product
On Tuesday 1 October, The Loughborough Building Society is launching a new product, 5 Year Fixed rate
Pure Retirement launches an Interest Servicing Option on the Heritage Lifetime mortgage range
Pure Retirement launches an interest servicing option across its Heritage lifetime mortgage range. Interest rate discounts up to 1% will apply for customers making monthly payments from just 25% to 100% of the monthly interest. Customers can choose to stop making the monthly payments at any time.
- Interest rate discounts up to 1.00%
- Available on both drawdown and lumpsum plans
- Option to service the interest on additional borrowing
- Three monthly payment holidays in every 12 month period
Explore the full details here.
Apex 800-860 plan withdrawal
From 25 September, more2life is withdrawing the Apex 800-860 from all new business.
KFIs on these plans are available up until 23:59 Wednesday 25 September 2024 and applications can be submitted up until 16 October 2024.
There are no changes to the Apex 880 and 900 plans.
Scottish Widows introduces additional LTV tier
From 27 September, Scottish Widows is introducing an additional LTV tier, LS12.
New Tailored & Tailored Enhanced Cashback
From 25 September, more2life is launching 1% and 2% cashback plans on Tailored Lifetime C5, C6, C7 & C8. They'll also be launching 1%, 2%, 3% & 4% cashback plans on Tailored Enhanced.
KFIs will be available on the new cashback plans from 25 September 2024.
LV= Lifestyle range update
With effect from Friday 27 September, LV= will be increasing the LTV’s across most pricing points (DD5, LS5, DD5 CB, LS5 CB remain unchanged).
LV= product changes
With effect from Friday 20 September, LV= will increase the LTVs on their Plus range up to age 75.
This will include re-opening their Drawdown+ Platinum and Platinum+ variants which were closed to new business in late 2022.
Canada Life reintroduces Platinum Plus
On Tuesday 17 September, Canada Life is reintroducing Platinum Plus.
LiveMore criteria change
From 17 September, LiveMore is making the following criteria changes:
- Free valuations are now capped at a maximum property value of £2million. All Fee Assisted products are free up to and including property values of £2 million. Properties over £2m will have the £2m survey fee deducted.
- LiveMore minimum loan is now £20,000. This impacts all products besides their 100% Debt Con range, and Fee Assisted Cashback products (these have a minimum loan of £75k). Equity Release is also now a minimum loan of £20,000.
L&G criteria update
Legal & General have updated their criteria on Ground Rent and Service charges as follows:
The maximum total service charge payable, to include ground rent and any contribution to a sinking fund, cannot be greater than 2.5% of the property value.
Apex plan changes to whole-of-market distribution
From 10 September, more2life is making the following changes to Apex plans:
- Reducing the min age on Apex 900 from 60 yrs to 55 yrs
- Making plans available to whole-of-market
J3 Interest Servicing Discount reduction
On Wednesday 11 September, Just are reducing the J3 Interest Servicing Discount by 25bps.
For any pipeline quotes, Just will need to receive applications before close of business on Wednesday 25 September 2024. Any applications received after this date will be on the new interest rates.
Tailored Lifetime 3% & 4% cashback
From 31 August, more2life is launching 3% and 4% cashback plans on the Tailored Lifetime C5, C6, C7 & C8 plans. They will hold the same criteria as the current Tailored Lifetime cashback plans with a £10,000 cap, apart from C8, which has no cap.
Hodge - new products launch
From 30 August, Hodge is introducing:
- One new 5 year fixed 50+ 60% LTV product
- One new 5 year fixed RIO 60% LTV product
LV’s policy notification process
LV= have updated their policy notification process and will now notify you when they issue an offer to your client on each drawdown withdrawal. This gives you the opportunity to check in with your client before the funds are taken if you see anything unexpected based on your initial advice.
As a reminder, LV’s policy notification process helps keep you informed about any key life events that could affect your clients’ LV= lifetime mortgage policy. As well as receiving a notification when an offer for drawdown withdrawal is made, you’ll also be notified when your client:
- Moves into another property
- Appoints a Power of Attorney
- Moves into long-term care
- Passes away
For more information, speak to an equity release account manager
Criteria Change for Tailored Lifetime
On Friday 23 August, leasehold houses, flats and maisonettes will be acceptable for Tailored Lifetime C5, C6 & C7 plans. The minimum lease term is 120 years.
LV= Sales Team Unavailable
On Thursday 22 August between 14:30 and 16:00, the LV= sales team will be uncontactable due to a meeting.
LV= Equity Release launch new high value lending telephone line
LV= Equity Release has introduced a new direct telephone line specifically for high value lending enquiries, putting you directly in touch with its high value lending specialists.
The high value lending team are equipped with the experience and knowledge from sales, underwriting and customer experience to support you and your clients with high value lifetime mortgage cases of £500k or more.
LV= also has a dedicated mailbox especially for these high value cases, so you’ll have peace of mind knowing that your equity release business is being managed efficiently.
Contact the LV= high value lending team today for support with your high value cases: 0800 028 8974 - option 4.
Emerald LTV Increase
From Friday 16 August, Pure will be introducing a new higher Emerald LTV. This will take the maximum LTV to 49%.
Leasehold accepted on Heritage
From Tuesday 13 August, leasehold will be acceptable on the following Heritage products: Super, Freedom 20 & 40, Super Max, Super Max Plus, Special 1 (including cashback), Supreme, Special 2 (including cashback), Special 2.5 (including cashback).
Flexi Choice initial advances min loan increase
On Thursday 8 August, more2life is increasing the minimum loan amount on Flexi Choice initial advances from £10,000 to £15,000.
The new minimum loan will apply to all new KFIs created from 00:01 Thursday 8 August.
Any existing KFIs for loans below £15,000 remain valid for 21 days from the date the KFI was produced.
New RIO product
Buckinghamshire Building Society have launched a new RIO fixed rate product in two variants: one with desktop (subject to property eligibility) and one without.
Is your client eligible for £1,000 cashback?
Standard Life Home Finance are pleased to have launched a new proposition offering your clients a free Energy Performance Certificate (EPC) when they complete on a Horizon or Horizon Interest Reward lifetime mortgage.
Plus, your clients could qualify for up to £1,000 cashback following completion, if their property receives an A or B rating for energy efficiency.
Available for a limited time only. T&Cs apply
Register now or create a KFI and offer your clients even more with Standard Life Home Finance.
Hodge criteria changes to 50+ & RIO
With immediate effect, Hodge is making the following changes across their 50+ and RIO products:
- Now accept up to 100% of non-contractual income streams including bonus, commission and overtime
- Now accept one year’s trading accounts OR the latest year's if your customers have been trading two years or more regardless of their LTV - plus can also consider retained profit
- There are no minimum income requirements for experienced contractors and affordability will be assessed over 48 weeks (up from 46) for day rate contractors
- Accepted gaps between contracts have been increased to 3 months (previously 6 weeks)
- Day one fixed term and day rate contractors are now acceptable
Aviva ER portal maintenance
Aviva ER system will be unavailable between 8am and 8.30am on Thursday 18 July.
LiveMore max loan increase
LiveMore have made changes to some of their products by increasing the Maximum Loan. For both Standard and RIO, all max loans are changing on LiveMore 1 – LiveMore 3.
For LiveMore 4 and 100% Debt Consolidation, these will not be changing.
Age Next Birthday terms across all Pure product ranges
Pure Retirement is now offering Age Next Birthday terms across all of their product ranges.
If the borrower (or for joint life cases, the youngest borrower) is within 50 calendar days of their next birthday, they can benefit from the LTV and interest rate available to them at their age next birthday.
This only applies to initial loans (not further advances) and will not apply where the borrower does not meet the minimum age required for the product.
Pure - IT maintenance and service disruption
Pure Retirement IT infrastructure will undergo necessary maintenance from: Sunday 28/07/2024 10:00 to Sunday 28/07/2024 20:00.
Please note that all services will be unavailable during this period and any alerting can be ignored.
L&G LTV change
From Wednesday 10 July, L&G have changed LTVs on their Lifetime mortgages.
Maximum Choice min loan increase
From Tuesday 9 July, more2life is increasing the min loan across all Maximum Choice plans from £10,000 to £15,000.
Capital Choice min loan increase
From Thursday 4 July, more2life is increasing the minimum loan on Capital Choice plans from £10,000 to £15,000.
L&G Planned System Downtime
On 5-7 July, Legal & General will be making changes to their system that will improve its performance.
During this time Legal & General systems including the Broker Portal will be unavailable for use between 6pm on 5 July and 4pm on 7 July.
New criteria enhancements
Hodge have made the following changes, introducing two new criteria enhancements across their products:
- Increased the age of the first death stress for joint borrowers from age 82 to 87 on the 50+ product
- Will now accept a self-contained annexe across their product range subject to the following:
- They’re let on a short-term basis for holiday letting
- They’re occupied by parties related to the property owner (such as a family member)
New product range available
We’ve introduced a new product range! more2life Tailored Lifetime products are now available on the Advise Wise Platform.
Heritage changes
From 18 June, Pure Retirement has made the following changes to the Heritage range:
- Introduced Heritage Special 2.5, available to customers aged 55-85, with LTVs of 38% at age 70
- Two cashback options for applicants from age 60:
- 3% cashback on all Heritage Specials (1, 2, 2.5 and 3)
- 5% cashback on Heritage Special 3
- Min property value of £70,000 (£100,000 for ex local authority) on all Heritage products (excluding Heritage Special 3)
- Further criteria considered, including: age-restricted properties, properties above or adjacent to commercial properties, thatched roofs, properties with annexes or self-contained accommodation, unsatisfied CCJs
LiveMore criteria changes
From Tuesday 18 June 2024, LiveMore are making some criteria changes on their standard Capital and Interest and Interest only products:
- Changed the maximum age on all standard products to No Maximum Age and there is no maximum application age for this
- Increased the maximum term to 40 years across both Standard Capital and Interest and Standard Interest Only products
LV= Sales desk closure
The LV= Sales Desk will have limited phone availability on the 12 of June for the full day.
On the 13 of June, the sales line (0800 028 8974 option 1) - will be closed. The line will re-open from 8:30am on the 14 of June.
If you are calling about an application already submitted, please re-dial and select option 2 to speak to our New Business team.
If you need to contact the team whilst we are away, please email Equityrelease.sales@lv.com and they will respond to you on their return.
LiveMore max loan and adverse limits increased
LiveMore have made some changes across their Standard Capital and Interest, Standard Interest Only, and Retirement Interest Only products:
- Increased maximum loan:
- LiveMore 1, 2 and 3 and Up to 100% Debt Consolidation is changing from £1m to £1.25m
- Greater maximum loans are available on referral across the range. Please speak to your BDM
- Increased maximum adverse for LiveMore 4:
- Unsecured arrears - increasing missed payments allowable from 3 to 4
- CCJs/defaults (satisfied) from £1500 to £2500
- Debt Management Plans are allowed if satisfactorily maintained and over 3 years ago
Just product changes
From 5 June, JUST are increasing LTV’s on their J4 range. New LTV’s range from 22% (age 55) to 49.50% (age 82).
| Product | ISM Discount |
| J1 | 20bps |
| J2 | 20bps |
| J2.5 | 25bps |
| J3 | 60bps |
| J4 | 80bps |
| J5 | 100bps |
New retirement products
On Monday 3 June, Buckinghamshire Building Society have launched:
- Two RIO products, one with desktop valuation and one without
- Two later life products, one with desktop valuation and one without. These are suitable where RIO may not fit criteria, (for example repayment or part and part loans a preference, age restrictions and more)
Canada Life Product Updates
From 9am Thursday 30 May, Canada Life are making the following changes:
- They are introducing new products across the Capital Select range (Ultra Lite, Ultra Lite Plus, Super Lite Plus and Lite Plus)
- LTV Change
- In addition, they are withdrawing the Lifestyle Select range from the market
If your clients want to take advantage of the currently available Lifestyle Select products, if a KFI on current terms has already been produced and your client would like to proceed, you will need to submit a linked application before 5pm on Thursday 6 June.
Hodge Holiday BTL Product Withdrawals
From 5pm Friday 24 May, Hodge will be removing some Holiday BTL Mortgage 2 year fixed products and these won't be replaced.
Heritage changes
From Wednesday 22 May 2024, Pure Retirement is making the following Heritage changes:
- Drawdown available on all products – min balance £500. Capped at max LTV minus initial advance, subject to a max facility of £200,000
- Min cash release from drawdown facility - £500 or whatever is remaining if less than £500
Holiday Buy to Let 5 year fixed rates withdrawal
From 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
LV= Criteria improvements
From 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.
Pure Retirement Announces a Major Refresh of its Emerald Range
Pure 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
Maxi criteria changes
From 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
Capital Choice Plus relaunch
From 24 April, Capital Choice Plus will relaunch for single life applicants only.
Just product changes
On 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
Apex changes
From 24 April, the maximum age will reduce on Apex Ultra 3 & 4 to age 70yrs (currently 75yrs).
Standard Life Home Finance Horizon 650 launch
On 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.
LiveMore changes and new products
From 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
LiveMore launches new digital case-tracking tool for intermediaries
LiveMore 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.
Pure Retirement increases LTVs on its Classic range
Pure 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.
Just criteria changes
On 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
Horizon 620 available for Joint Life applicants
Horizon 620 will become available for Joint Life applicants from Tuesday 9 April 2024.
Removal of foreign income acceptance
LiveMore has paused accepting foreign income.
Aviva introduces online applications for Aviva rebroke
You 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.
Professional Mortgage criteria change
Hodge have made a slight change to Professional Mortgage criteria. They now accept “sale of property” as a repayment strategy on interest only professional mortgages.
Standard Life Home Finance broadens their Horizon Interest Reward proposition
Standard 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.
Pure Retirement quarterly report
Pure 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.
New Horizon plan
On Saturday 2 March, Standard Life Home Finance is launching a new Horizon plan, Horizon 530, which will also be available on Horizon Interest Reward.
Scottish Widows new products
On 1 March, Scottish Widows is re-introducing LS10 and launching the new LS11 product.
Hodge new affordability calculator
Hodge 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
LiveMore increase to 100% debt consolidation
LiveMore 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.
Maxi Choice Changes
From 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
L&G website improvements
L&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
Classic changes
Pure 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).
Flexi change
From 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
Heritage changes
On 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.
LiveMore Max loan change
LiveMore have changed the max loan on their lifetime mortgages to £750k.
Standard Life Home Finance launches Horizon Interest Reward
This 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.
L&G Pricing structure changes
L&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
Apex changes
More2life 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
Plus product range
On 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.
Horizon 200 and 220 launch
Standard Life 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
Lifestyle range changes
From 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.
Changes to Capital Select Options
On 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.
Lengthened offer validity period on Classic products
Pure 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%
L&G product changes
On 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
L&G product changes
On 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
Horizon changes
From 5 January, Standard Life 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.
Capital Choice Midi relaunch
From 3 January, more2life is re-launching Capital Choice Midi and it will be available to both Single Life and Joint Life.
Apex changes
more2life 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
Rate changes and deadlines table
View the tableAdvise Wise in the press
- Advise Wise enhances vulnerability support for later life advisers, using Comentis technology Published: 19 November 2024
- Advise Wise launches new cost calculator tool, transforming product sourcing for later life advisers Published: 30 September 2024
- Advise Wise introduces primary surveyor information enhancing adviser support in later life lending Published: 17 September 2024
- Advise Wise introduces affordability tags to enhance Consumer Duty compliance and improve customer outcomes Published: 11 September 2024
- Advise Wise introduces API integration with Canada Life Published: 31 July 2024
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