More2life has launched a lifetime mortgage allowing borrowers to make unlimited repayments without incurring early repayment charges.
The Apex Zero product is aimed at borrowers whose circumstances may change during the period in which early repayment charges would usually apply.
It is available to applicants aged between 55 and 95, with loan-to-values ranging from 23% to 51% for both joint and single-life applications. The interest rate is 9.24% MER.
Customers can make unlimited optional repayments throughout the loan term without penalties, subject to a minimum payment of £50.
For joint-life cases, the product also provides an indefinite exemption window, allowing the second borrower to repay the full balance without an early repayment charge after the first borrower dies or enters long-term care.
Apex Zero is available only as a lump-sum product and includes further advance options and downsizing protection from the first day. The arrangement fee is £1,495 for an initial advance and £395 for further borrowing.
The launch follows more2life’s Maxi Zero product, introduced in 2024.
Dave Harris, chief executive of more2life, said: “it’s exciting to be able to continue to innovate in the later life lending space, and actively responding to feedback from our adviser network around greater product choice for customers.
“People are increasingly looking for flexibility in their retirement planning, and the launch of Apex Zero reinforces our commitment to meeting these needs.
“Being able to provide the later life lending sector’s widest range of lifetime mortgages, suitable for a variety of customer circumstances, is something we’re really passionate about, and we’re pleased to continue delivering.
“This is just one of several key developments coming this year, and we’re proud to be continually evolving our offering to give over-55s as many options as possible.
“The latest launch sits as part of a constantly evolving landscape. Modern lifetime mortgages offer customers more choice than ever, allowing interest to be fully or partly paid, potential rate discounts for making regular payments or – as in this case – zero early repayment charges.
“Put simply, these are no longer fringe options for over-55 clients.”
Sam Wickham, founder and chief executive of Later Life Retirement Planning, said: “The appetite for later life lending is clearly there, but unlocking the true potential of the market will depend on our ability as an industry to continue evolving the products and solutions available to clients.
“Zero ERC products are a great example of that evolution. They provide greater choice and flexibility, but importantly, they also give clients confidence that if their circumstances change, they have the ability to repay their lifetime mortgage without being penalised for doing so.
“We need products that reflect how people actually want to manage their finances in later life, rather than expecting clients to fit within traditional product structures, and it’s encouraging to see lenders prepared to challenge convention and take a more forward-thinking approach to product design.
“That kind of innovation is good for clients, good for advisers and ultimately good for the continued development of the later life lending market.”
Victoria Clark, head of lending at The Right Mortgage, said: “If our members tell us one thing, it’s the importance of having access to a wide range of products to support diverse client needs and priorities.
“Seeing products such as this, which enable clients to take out long-term borrowing without the fear of penalty if their circumstances change, is a major win for delivering great consumer outcomes across the financial services landscape.
“Additionally, it also offers a window to mainstream advisers into the sort of innovation taking place in the lifetime mortgage space, giving them a picture into the sorts of solutions available to their clients – even if they ultimately have to refer.”
