More2life launches flexi cost fairness launch deal

Later life lender More2Life has launched an fairness launch product to shut the hole between an curiosity serving and roll-up lifetime mortgage.

Its flexi cost time period lifetime mortgage (flexi PTLTM) is for debtors between the ages of 55 and 62 who can decide to serving a part of the curiosity so as to access increased mortgage to worth (LTV) choices in contrast to what’s often available with a roll-up product. 

More2Life will supply a spread of compensation choices and LTV tiers to swimsuit every borrower’s wants. 

At first, debtors should make contractual funds of partial curiosity till the age of 66. Once this ends, the plan will proceed as a roll-up mortgage. Additional voluntary funds might be made through the contractual compensation interval or after it ceases. 

The product can be utilized by debtors who’re already eligible for top LTV lifetime mortgages on a full roll-up foundation to cut back their total cost of borrowing. 

More2Life gave the instance of a borrower releasing £67,210 from a property valued at £286,000. The flexi PTLTM paid at an rate of interest of 6.11 per cent month-to-month equal charge (MER) will whole £297,460 over 11 years. This is in comparison with the very best LTV lifetime mortgage at 8.79 per cent MER which can cost £393,796 over the identical interval. 

The product is available on an advised-basis solely and can rely upon the borrower’s circumstances. The deal additionally consists of a regular no destructive fairness guarantee. 

Ben Waugh (pictured), managing director at More2Life, stated: “As the later life lending market grows, the wants of our purchasers have modified. We are dedicated to creating new merchandise to assist individuals who may in any other case be underserved by the trade. Our flexi cost time period lifetime mortgage providing partial curiosity serving is a brand new idea in later-life lending and is the preliminary step in our efforts to broaden the vary of later life merchandise. Whilst the preliminary scope is restricted, we count on to increase each age ranges and cost phrases available through the course of 2024. 

“It’s vital that everybody can access the best product for their individual circumstances, and advisers must be having in-depth conversations with their customers that cover the entire range of products on the market. Our flexi PTLTM product fills an important gap and will ensure that advisers can deliver fantastic outcomes for clients utilising affordability that a customer has for mandatory payments to access higher LTVs or reduce their total cost of borrowing.”