More2life has launched its latest lifetime mortgage, Tailored Interest Reward, designed to provide later life lending clients with more control over their costs of borrowing.
The later life lending says the Tailored Interest Reward provides advisers with a product that allows borrowers to tailor their monthly payment and the payment term to their individual circumstances.
Available on both lump sum or drawdown options, Tailored Interest Reward offers interest rate discounts of up to 0.65% with only a part-interest payment required (at least 25.01%) to secure the maximum discount.
The product offers a number of segmented plans – from C3 to C8 – with a maximum LTV of 38% and rate discount of 0.3% at C3, up to a maximum LTV of 58.4% and rate discount of 0.65% at C8.
More2life said one of the unique elements of Tailored Interest Reward was that it comes with no fixed term: the customer chooses how long they wish to make payments for, and they secure the interest rate discount available for that period.
When the agreed payments stop on any part of the loan, the interest rate reverts to the non-discounted rate.
On drawdown options, the borrower can choose if they’d like to include the Interest Reward feature when accessing their drawdown facility in the future or have the option to make ad-hoc payments as and when, giving customers longer-term control over their borrowing costs.
Dave Harris, CEO of more2life, said: “The launch of Tailored Interest Reward sits firmly within the requirement for advisers to conduct a full affordability assessment for each potential later life lending client, and we would encourage all advisers to do this in order to ensure the payments and target term remain affordable throughout this period.
“Tailored Interest Reward offers a number of positive features, not least the ability to secure an interest rate discount on both lump sum or drawdown, the segmentation of the product at different max LTVs and different maximum discounts, plus the fact the client can agree the length of term they wish to continue making monthly interest payments and at what level.
“Should the client then stop making interest payments, the product simply reverts to non-discounted rate, ensuring they maintain the benefits of the product, and they continue to have the full safety and confidence offered under the Equity Release Council standards, such as the no negative equity guarantee and retaining full ownership of the property.
“Much like with our most recent launches, such as last month’s Flexi Interest Reward feature, our focus is on offering products that fit the client’s affordability, their wants and needs, plus their ability to continue making payments now and into the future.
“With such options growing in number, and with more over-55s being suitable for these products, it’s absolutely imperative advisers not only conduct their affordability assessments, but that they have full access to all later life lending products available, both mainstream options and lifetime mortgages.
“Without understanding and being able to offer these it’s impossible to say they have recommended the most suitable and appropriate option. We want advisers to be fully immersed in the later life lending sector and we want to work with them to ensure the client always gets the best advice and advisers can ultimately deliver a positive outcome.”
