The ‘Tailored Enhanced’ and ‘Tailored Lifetime’ plans will replace the lender’s current ‘Tailored Plus’ and ‘Tailored Lite’ plans respectively.
Equity release lender more2life has launched a refreshed ‘Tailored’ plan range to provide older borrowers with flexible lending solutions.
The ‘Tailored Enhanced’ and ‘Tailored Lifetime’ plans will replace the lender’s current ‘Tailored Plus’ and ‘Tailored Lite’ plans respectively, and will offer fixed early repayment charges (ERCs), replacing the former gilt-based ERCs.
ERCs in the first year of the loan will start at 10% and decrease by 1% each succeeding year for the first 10 years, remaining at 1% until year 15 and then 0% thereafter.
Applications for the current gilt-based Tailored Plus and Tailored Lite plans will be allowed for two weeks following the launch of the refreshed plans, until 11.59pm on Tuesday 18 August 2020.
Further advances and drawdowns will still be available for existing customers with a Tailored plan who completed their initial advance on gilt-based terms.
more2life has also updated the lending criteria across its Tailored range, with changes including:
A maximum loan amount of £800,000 for properties in England, up from £600,000.
A cash facility option available up to maximum loan-to-value (LTV) less the initial advance, subject to a maximum unused facility of £200,000.
Properties with up to 30% flat roof, thatched roofs or built with modern methods of construction will be considered.
Flats above or adjacent to commercial properties can be referred to the lender.
Stuart Wilson (pictured), corporate marketing director at more2life, said: “Over recent years, product innovation has been a key driver in the growth of the equity release market as lenders seek to provide customers with an extensive range of options.
"more2life is no exception and we are confident that the changes we are introducing to our Tailored range will be met with enthusiasm by the adviser community.
“While gilts can offer some customers a good deal depending on the timing of redemption, for borrowers who would like greater control over repayments – particularly in the current climate – the refreshed Tailored range will give them exactly that.
“Since 2016 more than 1,000 more2life customers have redeemed their loans voluntarily. With fixed ERCs now as standard across our range, more2life customers – including now those who are recommended one of our Tailored plans – have a surety regarding how much they would need to pay in the unlikely event that they redeem their plan.
"We are delighted to be able to bring this level of flexibility and choice to the later life lending market.”
Wilson added: “Product innovation and development will continue to be a top priority at more2life, particularly as the coronavirus crisis progresses and customers look for greater flexibility in how they choose to support themselves in later life.
"Over the coming years, our aim is to continue to be pioneers in providing modern lending solutions to ensure that advisers across the UK can secure the best possible outcomes for their clients.”