More2life has launched its refreshed ‘Tailored’ plan range, with new fixed early repayment charges (ERCs).

The new ‘Tailored Enhanced’ and ‘Tailored Lifetime’ plans will replace the lender’s current ‘Tailored Plus’ and ‘Tailored Lite’ plans respectively and will offer fixed ERCs, replacing the former gilt-based ERCs. ERCs in the first year of the loan will start at 10% and decrease by 1% each succeeding year for the first 10 years, remaining at 1% until year 15 and then 0% thereafter.

Applications for the current gilt-based Tailored Plus and Tailored Lite plans will be allowed for two weeks following the launch of the refreshed plans, until 11.59pm on Tuesday 18 August 2020. Further advances and drawdowns will still be available for existing customers with a Tailored plan who completed their initial advance on gilt-based terms.

Stuart Wilson, corporate marketing director at more2life, said: “Over recent years, product innovation has been a key driver in the growth of the equity release market as lenders seek to provide customers with an extensive range of options. more2life is no exception and we are confident that the changes we are introducing to our Tailored range will be met with enthusiasm by the adviser community.

“While gilts can offer some customers a good deal depending on the timing of redemption, for borrowers who would like greater control over repayments – particularly in the current climate – the refreshed Tailored range will give them exactly that.

“Since 2016 more than 1,000 more2life customers have redeemed their loans voluntarily. With fixed ERCs now as standard across our range, more2life customers – including now those who are recommended one of our Tailored plans – have a surety regarding how much they would need to pay in the unlikely event that they redeem their plan. We are delighted to be able to bring this level of flexibility and choice to the later life lending market.”