more2life has launched its Apex Interest Reward product, a lifetime mortgage aimed at clients who want to make partial interest payments and receive discounted rates.
The product builds on the previously relaunched Apex offering and provides varying discounts based on the percentage of interest paid.
Clients making a 25% monthly interest payment will get a 0.30% discount, while those paying 50% can receive a 0.55% discount, and a 75% interest payment attracts a 0.75% discount.
Interest rates for the Apex Interest Reward start at 7.81% MER, with loan-to-values (LTVs) reaching up to 52%.
The discount is valid for the duration of the payment period, ending after 15 years regardless of whether payments continue.
The product meets Equity Release Council standards, ensuring the client’s home is not at risk during the payment term.
Overpayments of up to 10% of the initial loan can be made without a penalty, and payment holidays equivalent to three months are also allowed.
Ben Waugh, managing director of more2life, said: “The launch of this new Apex Interest Reward product is the latest example of more2life’s commitment to bringing genuine product innovation to the later life lending market.
“We are constantly seeking new ways to meet the needs of advisers and their over-55 borrower clients, and this product offers those who wish to keep on making interest payments for a fixed term to do so, but also benefit from a rate discount.”
Waugh added: “Not only do we have this rate incentive, but we offer the shortest fixed ERC period in the market, high LTV availability, plus key features such as overpayments, and of course, the client’s home is never at risk, even if their circumstances change and they have to stop making payments early, unlike with other potential options such as a mainstream residential or a RIO product.
“Coming swiftly after the launch of our Maxi Zero ERC product and the relaunch of Apex itself, we believe this further addition to our product offering provides innovation and options for clients potentially moving into the later life lending space for the first time, including those wanting a product that smoothes the path for them.
“These are later life lending product options designed for a much wider audience and we hope they provide advisers with a further reason to explore these solutions with their clients, particularly those coming up for remortgage, and to ensure they are able to offer the widest possible choice to all those suitable over-55 borrowers.”
