Henry Dannell has worked in partnership with Paradigm for over a year now, and were delighted to be added to their referral partner panel for member firms needing support with Equity Release and Later Life Lending. Stephen Savill is accredited by the LIBF and SOLLA for Later Life Lending and specialises in providing tailored Later Life mortgage advice for homeowners from age 55. At Henry Dannell, our mission is to educate clients to make Later Life finance as transparent as possible, ensuring they are fully informed and confident in their decisions. 2023 – Just when it was all going so well… What a remarkable year it has been in the Later Life market. We've witnessed a blend of eye-watering fixed rates, smaller loans, false starts, and at times, I’m sure I saw some tumbleweed. Client objectives have moved from aspirational to needs-based, with funding for domiciliary care a recurring theme. Many Later Life mortgage firms faced challenges in generating sufficient leads for their advisers, leading to ongoing cutbacks. This trend raises concerns about potential increases in setup costs for borrowers. 2024 – Stick or Twist? The recent period of remarkably low interest rates ended abruptly in Q4 2022. Rates 10 WINTER MORTGAGE NEWSLETTER Stephen Savill Later Life Mortgage Adviser Trusted partner for Equity Release referrals across all loans rose sharply and we now find ourselves in a transitional phase, where borrowers are adapting to the new normal. Some elder borrowers, with urgent capital needs and an aversion to downsizing, have no choice but to navigate current rates. Others are reconsidering their objectives, as borrowing at prevailing rates means a fixed rate for life with equity release. Waiting for lower rates poses risks for those requiring a relatively high loanto-value ratio with a Lifetime mortgage if property values decline, potentially hindering their objectives and bringing downsizing back as a solution, or perhaps maximum loans increase if rates decline. There’s plenty to consider. Product Enhancements for Improved Flexibility Some noteworthy Lifetime mortgage innovations have emerged in the Later Life market this year. • More2Life's Apex plan features early repayment charges lasting just four years • Legal & General's Payment Term Lifetime Mortgage accepts a spouse from age 50 and permits employed borrowers to make fixed-rate payments
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