More2life launch interest servicing lifetime mortgage

New ‘Apex Interest Reward’ plan offers rate discounts for equity release customers wanting to make partial interest payments

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Equity release lender more2life has introduced the Apex Interest Reward for homeowners who wish to make partial interest payments and benefit from reduced rates. 

This innovative lifetime mortgage product provides tiered discounts depending on the percentage of interest paid each month.

Customers who opt to pay 25% of the monthly interest can secure a discount of 0.30%, while those paying 50% can receive a 0.55% discount. A 75% interest payment qualifies for a 0.75% discount. 

The Apex Interest Reward has interest rates starting at 7.81% and offers loan-to-values (LTVs) of up to 52%.

These rate discounts apply only for the duration of the payment period and up to a maximum of 15 years, regardless of whether the homeowner continues making interest payments after this time. 

As more2life is a member of the Equity Release Council, all of its plans uphold the Council’s strict set of standards. This means clients choosing the Apex Interest Reward lifetime mortgage retain the right to stay in their home even if they are unable to keep up with payments in the future.

Flexible features include the option to make overpayments of up to 10% of the initial loan amount without incurring early repayment penalties. There is also the ability to take three-month interest payment holidays if needed, subject to conditions.

Solutions crafted for a broad range of later-life clients

Ben Waugh, managing director of more2life, spoke about the benefits of this new plan: “Not only do we have this rate incentive, but we offer the shortest fixed ERC period in the market, high LTV availability, plus key features such as overpayments, and of course, the client’s home is never at risk, even if their circumstances change and they have to stop making payments early.” 

He went on to point out that this is unlike mainstream residential or RIO (retirement interest-only) mortgages, where clients may otherwise face foreclosure if they’re unable to keep up with payments.

“These are later life lending product options designed for a much wider audience and we hope they provide advisers with a further reason to explore these solutions with their clients, particularly those coming up for remortgage, and to ensure they are able to offer the widest possible choice to all those suitable over-55 borrowers,” Waugh concluded.

Compare plans before making a decision

With a growing amount of interest-servicing options now available, it’s important for homeowners to compare plans before making a decision. Different lenders offer varying interest rates, repayment terms and additional features. By exploring and considering your options, you can find a plan that suits your unique needs and fits your financial goals.

To explore which equity release product might best suit your needs, including this new plan and others available from lender more2life, speak to one of our selected advisers who can compare a range of plans on your behalf.

To find out if you might be eligible for a plan, check here or talk to one of our selected advisers by calling 0808 178 3055 or request a call back.

Source:

New ‘Apex Interest Reward’ plan: more2life launches Apex Interest Reward lifetime mortgage product. The Intermediary. Accessed 07 November 2024.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn