A new lifetime mortgage product has been launched by more2life, which does not have any early repayment charges (ERCs). This product is designed for borrowers who have an immediate financial need but anticipate that their circumstances may change during a period when ERCs might be applicable.
More2life has described this offering as unique in the lifetime mortgage market. In addition to not having ERCs, the plan allows customers to downsize from the very beginning. This means that if they decide to move to a smaller property that falls outside the lender’s criteria, they can repay the loan in full without facing any ERCs.
Known as the Maxi Zero ERC, this deal is open to individuals aged between 55 and 89 years old. There is no limit on partial repayments – clients are free to repay their lifetime mortgage in full at any time without incurring any ERCs. The product also offers drawdown options.
Interest rates for the Maxi Zero ERC start at 6.77% MER, with an arrangement fee of £1,199 for the initial advance and £499 for any subsequent advance. Currently, the lifetime mortgage is only available through a select group of distributors, including Air members and specialized firms like The Later Life Lending Network, Key, and Mortgage Advice Bureau (MAB).
Ben Waugh, the managing director of more2life, expressed his belief that this product will revolutionize the lifetime mortgage market, providing advisers and their clients with a valuable option. The ability to repay the loan without any ERCs can be particularly advantageous for homeowner clients whose circumstances may change unexpectedly.
According to Mark Gregory, Founder & CEO of Equity Release Supermarket, this new product addresses the needs of customers who are considering a lifetime mortgage but anticipate changes in their circumstances during the period when ERCs would typically apply. It reflects the ongoing evolution of the market to meet the changing needs of consumers.
Overall, the introduction of the Maxi Zero ERC lifetime mortgage by more2life represents a significant development in the equity release market, offering borrowers more flexibility and financial security. This innovative product is expected to have a positive impact on advisers, clients, and the wider later life lending sector.