Brokers have heaped praise on later life lender More2Life after it cut its rates following feedback from intermediaries.
It comes after equity release broker Stuart Powell was invited with a few others to join a call with the major lifetime mortgage lender’s senior management team on Friday.
In that call the team engaged with the intermediaries about the current state of the market and asked what help brokers needed.
Powell said that a lifetime mortgage interest rate “starting with a 5% would be nice”.
Following this, he received an email from More2Life stating that it is now offering a rate of 5.94%. Fellow lender Responsible Lending is also down to 5.94%.
He has since informed PR platform Newspage of the details of email from the lender this afternoon (Monday 28th November).
It read: “I want to report that we have been able to work with our funder to deliver the interest rate that you requested on our Friday afternoon call.
“You told us that being able to offer “rates from 5.99%” was an emotional and commercial advantage when talking to customers so More2Life have delivered this for you.
“You asked, we listened, and we delivered. We will continue to deliver as many positive outcomes as humanly possible over the coming days, weeks and months as we continue to support that market in the new normal.”
Powell, along with fellow Newspage members, was quick to welcome the responsiveness of the lender.
Powell, managing director of Ocean Mortgages, said: “For a lender to invite brokers on a call to find out what they need is pretty rare.
“For them to then act on the requests by brokers is unheard of, especially when the request was for slightly lower interest rates.
“In a toughening market, lenders and brokers working together like this has to be in the best interests of all those looking to borrow. This is great news for consumers. Chapeau More2Life.”
Fellow members of the PR platform were equally glowing in their praise of the lender.
Justin Moy, managing director at EHF Mortgages, said: “It’s great to see a lender like More2Life appeal for help and support from the broker community, and then be able to deliver.
“Time and time again they are modern innovators in what is a mature market. It would be great if a few more lenders looked to do this, too, as intermediaries arrange over 75% of all mortgages written, and our input can be invaluable.”
While Dan Osman, head of later life lending (Age 55+) at UK Moneyman, added: “More2Life were the most progressive lender when they entered the lifetime mortgage market and it is no surprise, and very good news, to see them leading the way here.
“Their director of manufacturing has a great reputation for driving improvement across both development and delivery.
“It can only be good that More2Life’s drop will trigger similar drops from other lenders. 6% has been a threshold for many aspirational borrowers in a position to wait before going ahead and maybe what has been needed to kickstart the market again.
“Sadly many borrowers acting from need may not benefit unless they are in a position to delay completion until rates decrease.”
Aaron Strutt, product and communications director at Trinity Financial, said that while more needed to be done by the market in general this was a great first move.
He said: “It is incredibly positive to see headline rates dipping below 6% although many lenders are still charging in excess of 7%.
“Much more needs to happen before this sector is offering appealing lifetime mortgage products to consumers again.”
Samuel Mather-Holgate, independent financial advisor at Mather and Murray Financial, summed it up with: “More2life have been one of the market leaders on rates and their evolution of product features over the past 24 months has been really pleasing to see.
“With a sub-6% product they are anticipating gilt rates won’t rise that much further, and I think they’re right. I’m sure more lenders will follow suit.”
