Later life lender more2life has launched a pilot of a new lifetime mortgage feature designed to offer borrowers greater flexibility on interest costs.

The lender has introduced Omni Interest Reward, an addition to its Omni lifetime mortgage range launched last year, which combines higher loan-to-value limits with shorter early repayment charge periods.

Under the pilot, borrowers can secure a 0.4% interest rate discount by committing to pay 50% of the monthly interest charged on their lifetime mortgage. Up to three months of payments can be missed before the discount is automatically withdrawn.

More2life said the product includes early repayment charge periods of six years, among the shortest available from the lender, alongside the ability to make overpayments of up to 15%. The lender said this is intended to give borrowers greater control over how their borrowing develops over time.

Omni Interest Reward is available to borrowers aged up to 89, with loan-to-value ratios ranging from 37% to 59.65%. The product is open on properties valued between £115,000 and £3.5 million.

The pilot is initially being offered to a limited number of advisory firms, including One Stop 4 Equity Release, Retirement Solutions and Eadon & Co., with a wider rollout planned following the trial period.

The launch follows a series of recent changes across the lender’s lifetime mortgage range. more2life has relaunched its Apex and Apex Interest Reward products, which offer higher LTVs for borrowers aged 84 to 95, while the interest reward version provides discounts of up to 0.75% for those committing to repayments.

In addition, the lender has reduced early repayment charges on its Flexi range to 10 years and integrated the Horizon range into its wider lifetime mortgage proposition.

Commenting on the pilot, Dave Harris (pictured), chief executive of more2life, said: “The Omni product range has been designed to address clients who are crying out for greater flexibility, higher LTVs and low ERCs. This is where Omni shines.

“The addition of Omni Interest Reward brings further flexibility, through the ability to secure a substantial interest rate discount when committing to making repayments.

“Omni Interest Reward is initially only available to advisers taking part in the pilot scheme, though we look forward to expanding its distribution to more of the market in the future. The launch highlights our innovative approach to product design in the lifetime mortgage space, building on our relaunch of Apex and Apex Interest Reward already in 2026.

“This is a significant year for the industry, with the FCA looking closely at the issue of holistic advice and the treatment of older borrowers. Innovations like Omni Interest Reward show providers are stepping up, designing new products which meet the needs of borrowers in a broad range of scenarios.

“The key now is for advisers to come on board, and ensure every client is assessed across all suitable options. Later life lending can no longer be viewed as a niche area of financial services, but instead a core (and normal) element of every adviser’s toolkit.”

Tim Eadon, managing partner at Eadon & Co., added: “Access Equity Release and Eadon & Co. are pleased to see continued product development from more2life with the launch of Interest Reward attached to the high LTV lending offered through Omni.

“Omni’s higher LTVs provide additional borrowing capacity where needed and now, with the ability to secure a discounted interest rate through servicing some of the interest, clients can also help reduce the cost of borrowing.”