It offers reduced rates for clients making partial payments
Later life lender more2life has introduced a new lifetime mortgage product, Apex Interest Reward, which offers interest rate discounts to clients who commit to partial interest payments.
Discounts vary according to the percentage of interest paid. Clients paying 25% of the monthly interest will receive a 30-basis-point (bps) discount on their rate, while those paying 50% will get a 55bps discount, and clients covering 75% will benefit from a 75bps reduction. Rates on the Apex Interest Reward product start at 7.81% MER, with loan-to-value ratios up to 52%.
A key feature of Apex Interest Reward is its four-year fixed early repayment charge (ERC) period. This flexibility, combined with no affordability checks and the ability to make overpayments of up to 10% of the initial loan without penalty, aims to provide a cost-effective option for homeowners over 55 looking to release equity.
Clients who maintain payments will retain their rate discount for up to 15 years. If payments continue beyond this period, the discount will end, but outstanding balances will be added to the total loan amount rather than extending the payment term.
more2life said the product complies with Equity Release Council standards, ensuring that clients’ homes are protected even if they stop making payments.
Apex Interest Reward is available to clients aged 55 to 84 and offers flexible features, including the option to take payment holidays of up to three months without losing the interest rate discount. The product is accessible through whole-of-market adviser distribution.
This launch follows several recent product introductions from more2life, including the Maxi Zero ERC lifetime mortgage, which has no early repayment charges.
“Coming swiftly after the launch of our Maxi Zero ERC product and the relaunch of Apex itself, we believe this further addition to our product offering provides innovation and options for clients potentially moving into the later life lending space for the first time, including those wanting a product that smoothes the path for them,” said Ben Waugh (pictured), managing director of more2life.
“These are later life lending product options designed for a much wider audience, and we hope they provide advisers with a further reason to explore these solutions with their clients, particularly those coming up for remortgage, and to ensure they are able to offer the widest possible choice to all those suitable over-55 borrowers.”
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