Equity Release Supermarket (ERS) has partnered with later life mortgage provider, LiveMore, to provide a new lifetime mortgage that aims to broaden the accessibility of equity release for those that may not have been eligible previously due to specific features about their property, namely spray foam.
The equity release underwriting process on property criteria has hitherto been restricted by lenders and their inflexible attitude compared to the mainstream mortgage market.
Mark Gregory, founder and CEO, Equity Release Supermarket, said: “Theoretically, spray foam insulation sounds like a great way to protect your home from the cold weather given that it’s a higher-end insulation option that’s been on the market for over 30 years. However, when it comes to financing a property, whether that’s for re-mortgaging purposes, buying a new home, or applying for equity release it can present a serious issue, and often a barrier to entry.
“This has greatly affected thousands of property owners in the UK, especially due to current household energy prices, whereby many homeowners have utilised spray foam to help with insulation in an attempt to reduce their fuel bills, only to result in wider financial support issues.”
It is estimated that over 250,000 homes in the UK have spray foam insulation according to the Royal Institution of Chartered Surveyors (RICS). However, due to the risks it can pose to the structural integrity of the property, it can often be viewed as a risk for lenders when looking to secure loans on a property such as a mortgage.
Now, in partnership with LiveMore, who specialise in mortgages for those aged between 50 and 90, Equity Release Supermarket is offering LiveMore Property+, a new lifetime mortgage that aims to broaden the accessibility of equity release and break down the barriers to entry.
Gregory added: “LiveMore started lending in 2020 and was one of the prominent Retirement Interest Only Mortgage (RIO) adversaries. Since then, LiveMore have added Term Interest Only (TIO) and Capital and Interest mortgages to their range, plus more recently launched into the Lifetime Mortgage market. Using their experience from the mainstream mortgage market they have adopted a more flexible underwriting approach to effectively disrupt the equity release industry.
“We’re delighted to work alongside them in bringing to market, and to our clients, the new LiveMore Property+ plan, offering a far more flexible underwriting approach than the standard lifetime mortgages currently available.”
The amount consumers can borrow through Livemore Property+ is based on the age of the youngest applicant and the property value, with the focal appeal being that it can accept applications from properties that currently have spray foam insulation in their roof. Where the LiveMore Property+ plan differs is stipulating the spray foam must be removed after the release of funds. Therefore, homeowners with insufficient savings to pay for the spray foam removal upfront, can have the work completed within 90 days after receiving their equity release money.
The product also covers many other areas that, until now, had made it impossible to release equity, with inclusions such as proximity to commercial property, flood zones, service charge and ground rents, and construction types for example.
“For those who may have previously been turned down for equity release due to features such as spray foam on their property, it is worth reengaging with an independent equity release adviser to explore options now available with this new solution.” said Gregory.