Recapping 2024’s product innovation
Here at Equity Release Wise, we reported on a number of examples of development and innovation in the equity release sector in 2024.
In June, for example, we reported on equity release product updates from Pure Retirement, LV= and Standard Life.
Pure Retirement had refreshed its ‘Emerald’ range of lifetime mortgages with customer-focused improvements of minimum drawdown amounts, early repayment charges and cash release loan-to-values (LTVs). They also increased its maximum age for applicants to 90, raised the maximum initial advance to £1.5m, relaxed lending criteria for people owning flats and maisonettes, and removed its arrangement fees.
LV= had relaxed restrictions on people releasing equity from properties adjacent to, or above, commercial premises. They also relaxed restrictions on properties in certain flood zones, and on certain listed properties.
Standard Life had also increased its LTVs. That was in addition to launching a feature enabling partial capital repayments from the outset of taking one of its Horizon 650 plans, with fixed early repayment charges for eight years.
In October, we looked at a ‘groundbreaking’ lifetime mortgage from more2life. Their ‘Maxi Zero ERC’ plan does away with early repayment charges altogether. This means that borrowers can repay their lifetime mortgage early without facing additional costs. That could mean a saving of thousands of pounds for people whose circumstances change after taking out a lifetime mortgage, such as getting a windfall or deciding to move home.
A few days later we reported that Pure Retirement had added an interest payment option to its Heritage plans. This gives their customers the option of making monthly payments towards the interest on their lifetime mortgage. This reduces the overall debt and the cost of borrowing and protects more of the equity in a customer’s home for passing on to beneficiaries.
In November, there was news that more2life had also launched an interest servicing lifetime mortgage. Their ‘Apex Interest Reward’ plan offers interest rate discounts for as long as a customer makes partial interest payments.