Later life lender more2life has introduced Flexi Interest Reward, a new lifetime mortgage feature offering personalised interest rates based on a client’s ability to make regular payments.
The product, part of more2life’s Flexi lifetime mortgage, introduces live pricing, allowing borrowers to secure interest rate discounts based on affordability and fixed monthly contributions.
PERSONALISED RATE DISCOUNTS
Flexi Interest Reward allows clients to reduce their borrowing costs over the loan term. Borrowers who make consistent payments benefit from tailored rate discounts, which can range between 5 and 75 basis points (bps) at launch.
Clients can choose their own payment levels and duration, with the discount remaining in place for life if all payments are met. Payments can also exceed 100% of the plan’s monthly interest, potentially increasing the interest rate discount.
Beyond fixed payments, borrowers can also make overpayments to reduce overall borrowing costs. More2life allows monthly payments and overpayments to total up to 10% of the initial loan amount per year during the early repayment charge (ERC) period.
FLEXIBILITY FOR BORROWERS
The product is available to clients aged 55 to 82 (plus 364 days) and has a maximum loan-to-value (LTV) of 48%. The ERC period lasts 15 years, and the plan meets Equity Release Council standards, ensuring:
- Security of tenure for life
- A fixed rate for the lifetime of the mortgage
- A guarantee that borrowers will never owe more than their home’s value
Flexi Interest Reward also introduces flexibility for borrowers who miss payments:
- If the account falls into arrears for three months or less, clients can retain their full rate discount by repaying the missed amount within that period.
- If a borrower loses their Interest Reward discount due to missed payments, they will not lose the full amount if they have already paid over 25% of their pre-agreed sum. Instead, previous payments—including voluntary overpayments—will be considered, meaning only a portion of the discount may be removed.
MARKET-FIRST APPROACH
More2life said Flexi Interest Reward is unique in the market, offering bespoke live pricing based on a borrower’s affordability and fixed payment commitment. The lender also confirmed that it will continue to develop innovative solutions throughout 2025 to meet the evolving needs of later-life borrowers.
Dave Harris (pictured), CEO of more2life, said the product was designed to give clients greater control over their finances.
“We continue to look at ways we can offer bespoke, personalised solutions to lifetime mortgage customers. This product allows clients to manage payments with certainty on rate discounts, ensuring they can structure their borrowing in a way that suits their financial plans.
“Flexi Interest Reward is also a first in the sector, enabling advisers to assess affordability and secure real-time personalised pricing to provide the most competitive rate possible.
“Crucially, clients can benefit from rate discounts, flexibility on payments, and the ability to plan ahead with transparency. With this feature, borrowers retain key benefits of a lifetime mortgage, including security of tenure and a no negative equity guarantee.
“We believe this marks another step forward in later-life lending, rewarding clients for their payments with lower borrowing costs, securing the finance they need while maintaining long-term stability.
“We’re looking forward to working with advisers and stakeholders to establish Flexi Interest Reward as a key offering within the later-life mortgage market.”
