More2life has launched its latest lifetime mortgage product, Tailored Interest Reward, designed to give clients more control over their borrowing costs.
The product allows borrowers to customise their monthly payment and term to fit individual needs.
Available as a lump sum or drawdown, it offers interest rate discounts up to 0.65% with at least 25.01% part-interest payment securing the maximum discount.
The product includes segmented plans with a maximum loan-to-value (LTV) of 58.4% and various discounts depending on the plan chosen.
A significant feature of Tailored Interest Reward is the absence of a fixed term, allowing customers to choose their payment duration while maintaining the available interest rate discount.
If payments stop, the rate reverts to non-discounted.
On drawdown options, borrowers can decide whether to include the Interest Reward when accessing their facility or make ad-hoc payments, offering long-term control over borrowing costs.
Dave Harris, chief executive officer of more2life, said: “The launch of Tailored Interest Reward sits firmly within the requirement for advisers to conduct a full affordability assessment for each potential later life lending client, and we would encourage all advisers to do this in order to ensure the payments and target term remain affordable throughout this period.
“Tailored Interest Reward offers a number of positive features, not least the ability to secure an interest rate discount on both lump sum or drawdown, the segmentation of the product at different max LTVs and different maximum discounts, plus the fact the client can agree the length of term they wish to continue making monthly interest payments and at what level.”
Harris added: “Should the client then stop making interest payments, the product simply reverts to non-discounted rate, ensuring they maintain the benefits of the product, and they continue to have the full safety and confidence offered under the Equity Release Council standards, such as the no negative equity guarantee and retaining full ownership of the property.
“Much like with our most recent launches, such as last month’s Flexi Interest Reward feature, our focus is on offering products that fit the client’s affordability, their wants and needs, plus their ability to continue making payments now and into the future.”
He said: “With such options growing in number, and with more over-55s being suitable for these products, it’s absolutely imperative advisers not only conduct their affordability assessments, but that they have full access to all later life lending products available, both mainstream options and lifetime mortgages.
“Without understanding and being able to offer these it’s impossible to say they have recommended the most suitable and appropriate option.
“We want advisers to be fully immersed in the later life lending sector and we want to work with them to ensure the client always gets the best advice and advisers can ultimately deliver a positive outcome.”
