More 2 Life has added an additional feature to its Capital Choice Plan for joint borrowers.

Older homeowners who take out an equity release loan together will now be able to take advantage of the new feature, which allows surviving spouses to repay the loan within three years of the death of their partner, without incurring an Early Repayment Charge (ERC).

This is the first time More 2 Life has offered this feature on any of its products.

The lender’s Capital Choice Plan is a lump sum lifetime mortgage that offers a low rate of interest and flexible partial capital repayment option. It is suitable for clients who are looking for a higher lump sum and the ability to make partial capital repayments from day one if they want to.

Last year, the minimum age requirement for borrowers was lowered to age 55, allowing more individuals to unlock the wealth tied up in their properties.

Borrowers who opt for Capital Choice can also benefit from fixed ERCs offered as part of the plan, in addition to the plan’s 10% ERC-free partial repayment option.

Research from More 2 Life last year revealed that 62% of IFAs believed greater flexibility and choice around early repayment options would make equity release more popular among older homeowners, with half of the IFAs’ clients expressing an interest in flexible repayment options.

More 2 Life has also added additional features such as a built-in guaranteed inheritance feature that allows borrowers to protect up to 50% of the value of their property as well as downsizing protection.

Dave Harris, CEO at More 2 Life, said: “It is great to be able to announce this new feature on our Capital Choice Plan as we continue our commitment to putting customers first and working closely with our intermediary partners to develop products that their clients want. The equity release market saw record levels of growth in 2017. However, it is vital for lenders to drive innovation in the market further to enable more borrowers to access the equity locked in their property.

“All the signs are pointing towards equity release becoming a more mainstream approach of accessing cash during retirement. Therefore, it is imperative that older borrowers have a greater range of options available to choose from, which will provide them with the flexibility they require. Lenders must ensure they are continually innovating to both launch new products and enhance their current offerings to include valuable features for clients. At More 2 Life, we are constantly looking to expand our own products with added features, and this latest development highlights our commitment to meeting the requirements of clients and intermediaries.”