Its Maxi Plan now provides downsizing protection after five years
Later life lender more2life has shortened the period for early repayment charges (ERCs) on its Maxi range of lifetime mortgages, which caters to clients aged between 55 and 89.
The ERC term has been cut from 10 years to seven, offering flexibility for clients of the range that offers loan-to-value (LTV) ratios between 18.5% and 49.5%. Loans are available from £15,000 to £2 million, with options for either a full lump sum or a smaller lump sum and drawdown from £500. Clients can also make partial repayments from day one.
In addition, the Maxi Plan provides downsizing protection after five years, allowing clients to repay the loan in full without incurring ERCs if they move to a property that falls outside more2life’s criteria.
Advisers with existing Maxi cases can request the new, shorter ERC term for their clients. This update follows the recent introduction of the Maxi Zero ERC plan, the first later-life lending product in the market with no ERCs.
“Earlier this year, we conducted research among over 300 advisers active in the later life lending space, asking them how we could improve our plans,” said Ben Waugh (pictured), managing director of more2life. “Eighty-five percent of respondents said they wanted more flexibility from ERCs, and we believe it’s important to listen and act on what advisers and their clients want.
“This is why we’ve been able to reduce our ERCs on the Maxi range from 10 to seven years, plus, of course, we’ve also been able to launch the first-of-its-kind Maxi Zero ERC product last month.”
Waugh also emphasised the lender’s commitment to product development, adding that more product announcements would be made later this year.
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