more2life has today (18th February 2025) launched a new feature, Flexi Interest Reward, for its Flexi lifetime mortgage.
This feature bases interest rates on live pricing and assesses client affordability, determining rates by their ability to make monthly payments.
It aims to significantly reduce borrowing costs, as the product does not rely on credit scores, and homes won’t be repossessed if payments stop early.
Interest rate discounts range from 0.05% to 0.75%, and clients can choose to pay more than the monthly interest for greater discounts.
Overpayments up to 10% of the loan amount per year are allowed during the early repayment charge (ERC) period.
The feature is available to clients aged 55 to 82, with a maximum loan-to-value (LTV) of 48% and a 15-year ERC period, meeting the Equity Release Council standards.
The product allows clients a 3-month grace period if they fall into arrears, retaining full discounts if they catch up within this time.
If over 25% of the pre-agreed amount has already been paid, only part of the discount may be lost.
Dave Harris, CEO of more2life, said, “We continue to look at the ways and means by which we can offer bespoke, personalised solutions to lifetime mortgage customers, not least so they have full control over the payments they make and certainty on the discounts they receive, allowing them to manage their finances much more effectively.
“Flexi Interest Reward does all this, and then some, allowing the adviser to assess affordability and – in a first for this sector – allows them to secure personalised pricing at that moment in time, in order to ensure we can provide as competitive a rate as possible.”
Harris added: “This is all about ensuring the client is in the strongest possible position and benefiting fully from their ability to make payments, while also having full transparency about what rate they will pay for the life of the mortgage, plus allowing further overpayments and, if necessary, a period where they might not make payments at all but will still be able to benefit from a rate discount.
“Advisers have the opportunity to make their affordability assessment, in order to weigh up Flexi Interest Reward against all other available later life lending options, and we can then ensure clients are getting the most suitable, positive product solution for their needs from right across the market.”
He said: “With this product clients are also benefiting from other aspects of the lifetime mortgage such as security of tenure, never owing more than the property’s value and also being able to plan ahead more effectively.
“We believe this marks another step forward, not just in terms of specific lifetime mortgage product provision and innovation, but also in terms of later life lending as a whole.”
He added: “It rewards clients for payments with rate discounts and excellent ‘moment in time’ pricing, offers further opportunities to keep the cost of the loan down based on affordability, allows them to secure the finance they need, and gives them security and certainty for the long-term.
“Everything we believe older homeowners and their advisers are seeking in this market.
“We’re looking forward to working with all stakeholders to firmly establish Flexi Interest Reward within the later life lending space.”
