"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."
- Ben Waugh, managing director of more2life
more2life has launched the first lifetime mortgage where no early repayment charges (ERCs) apply, designed to provide clients with maximum flexibility in later life.
Based on more2life’s current Maxi Super 1, 2 and 3 lifetime mortgage products, Maxi Zero ERC supports clients who have an immediate financial need but anticipate their circumstances may change in the period where ERCs typically apply.
The product has no partial repayment limit – the client is free to repay their lifetime mortgage in full at any point without incurring an ERC.
Maxi Zero is the first more2life product to allow an indefinite ERC exemption window for joint life cases, meaning when the first borrower either passes away or goes into long-term care, the remaining borrower can repay the loan in full without incurring an ERC.
It is also the first more2life plan that offers the ability to downsize from day 1, where if the client wishes to downsize to a property outside of the lender’s criteria, they can repay the loan in full without incurring ERCs.
Maxi Zero ERC is available to clients aged between 55 and 89 years old with LTVs offered at between 20.5% and 49.5% and loans available from £15,000 to £700,000.
Rates start at 6.77% MER and the product is currently available through a limited number of distributors including Air members and selected specialists, such as The Later Life Lending Network, Key, and Mortgage Advice Bureau (MAB).
Drawdown options are available and the product has an arrangement fee of £1,199 for the initial advance and £499 for any further advance.
more2life said the product was a ‘one of a kind’ offering in the later life lending market against a backdrop where standard ERCs of 10-15 years often apply, with the shortest being the lender’s own recently relaunched Apex product which has a four-year period of charges and an LTV up to a maximum of 52%.
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.
“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.
“The industry, as a whole, has been challenged to deliver the next generation of later life lending products for borrowers with a whole host of needs and circumstances which have not, and could not, be met by more traditional options. We certainly believe that with Maxi Zero ERC, and a number of other products we’ll soon be launching, more2life is delivering on this challenge.
“The launch of this product takes the later life lending sector forward once again, with an option that has never been available before. For existing later life advice specialists, and those mainstream players reviewing their involvement, it is proof of the revolution taking place in this space; opening up further solutions to deliver the positive consumer outcomes we all wish to see.”
