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New lifetime mortgage with no early repayment charges

New lifetime mortgage product with no charges

By Clare Yates • 7th October 2024 • 5 min read

A ‘groundbreaking’ lifetime mortgage from more2life

Written in line with our editorial policy.

In a significant development for the equity release market, more2Life has launched a groundbreaking lifetime mortgage product that comes with no early repayment charges (ERCs). 

The product is designed to give homeowners over the age of 55 more flexibility. It’s aimed at those who want the security of accessing property wealth without being locked into penalties if they choose to repay the loan early.

What does the more2life lifetime mortgage offer?

The new Maxi Zero ERC plan from more2life allows borrowers to access the value of their home while still living in it, like other lifetime mortgages. However, the standout feature is the absence of ERCs, which means that customers can repay the loan early without facing additional costs. 

It has been developed to offer clients “maximum flexibility” during their later years. Built on more2life’s existing Maxi Super 1, 2, and 3 lifetime mortgage products, Maxi Zero ERC is aimed at clients with an immediate financial need who expect their situation may change during the time when ERCs would normally be applied.

If a homeowner’s circumstances do change – such as a financial windfall or deciding to downsize – they can repay the loan early without worrying about charges eating into their equity.

Other plan features include:

  • Age range – Available to homeowners aged 55–89 
  • Loan amount – £15,000 – £700,000 
  • Minimum property value – £120,000 (£150,000 for ex-public sector houses and bungalows) 
  • Maximum property value – No maximum 

The plan also allows voluntary ad hoc partial repayments, with a minimum limit of £50 per repayment.

What are early repayment charges?

ERCs are among other fees that equity release providers charge if you repay all or part of your mortgage earlier than the agreed terms. For traditional lifetime mortgages, these fees can be significant, as the lender needs to cover the loss of interest they would have earned over the term of the loan. 

These charges can sometimes be a barrier to people who want to change their financial plans in the future, but this new offering from more2life provides more freedom and peace of mind.

Why is this new product important?

This ERC-free lifetime mortgage from more2Life is a step forward in making equity release even more flexible and affordable for homeowners seeking to unlock some of their property wealth. It’s a good example of how equity release providers are listening and responding to the needs of consumers.

Quoted in FT Adviser, the managing director for more2life Ben Waugh said:

“To say we’re excited about the launch of this new Maxi Zero ERC product would be an understatement. We believe it is a complete game-changer for the lifetime mortgage market, advisers, their clients, and the wider later life lending space.

“Not only could this product provide the finance the client needs from the outset, but it also allows them to pay off their lifetime mortgage at any point with no charges at all. This is something that has been unheard of within the later life lending sector up until now.”

Ready to equity release compare plans?

If you think this plan might be a good option for you then make sure you speak to our selected equity release advisers. They can search products from leading providers – including more2life – to check if this or another plan would best suit your individual wants and needs. 

Please call 0800 096 2215, or request a call back for a time that suits you, and we will arrange a call with one of our selected advisers. Alternatively, you can use our free equity release calculator to see how much you could unlock. 

Remember, all the advice and quotations you receive (including access to competitive equity release rates) will be given free of charge. You’ll only pay a fee for advice if you choose to go ahead with a plan, and you can typically pay this from the money you release from your home.

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

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