more2life has launched a lifetime mortgage product with no early repayment charges (ERCs), in order to offer flexibility for those facing changing financial needs later in life.
Based on more2life’s current Maxi Super 1, 2 and 3 lifetime mortgage products, Maxi Zero ERC was created to support clients who have an immediate financial need, but anticipate their circumstances may change in the period where ERCs typically apply.
Available for clients aged 55 to 89, the product offers loan-to-value (LTV) ratios between 20.5% and 49.5%, with loans ranging from £15,000 to £700,000.
The product allows clients to repay their mortgage in full at any time, without facing ERCs.
It also meets the Equity Release Council’s standards and offers drawdown options.
Ben Waugh, managing director of more2life, said: “To say we‘re excited about the launch of this new Maxi Zero ERC product would be an understatement.
“We believe it is a complete game-changer for the lifetime mortgage market, advisers, their clients, and the wider later life lending space.
Waugh added: “To have a product with no ERCs is going to provide advisers with an enhanced option, especially those who have homeowner clients whose circumstances might change within a relatively short space of time.
“Not only could this product provide the finance the client needs from the outset, but it also allows them to pay off their lifetime mortgage at any point with no charges at all.
“This is something that has been unheard of within the later life lending sector up until now.”
Mark Gregory, founder and CEO of Equity Release Supermarket, said: “The introduction of more2life’s Maxi Zero ERC product brings about further positive change for our industry.
“Our advisers will welcome the addition of this innovative, flexible product to our independent, whole-of-market advice process.
“From a practical perspective, we’ve already seen how this supports customers considering a lifetime mortgage who expect their circumstances to change in the period where an early repayment charge would usually apply, after already discounting downsizing and other mortgage alternatives.
“It also endorses how our market continues to evolve in line with the changing needs of consumers.
“Continued focus by more2life on pushing the boundaries and setting new product standards is exactly what our industry needs – something I’m a strong advocate of.”
