The online tool helps brokers to assess whether the Interest Choice Plan suits customers’ needs and to print out a report to support an application for the plan which allows borrowers to service the interest on the loan.
It is being launched as more 2 life becomes fully MMR compliant from today – more than two weeks ahead of the MMR deadline - after finalising changes to its application forms and processes.
Key changes include asking for more detailed information on affordability, how customers plan to repay loans and pay the fees due.
more 2 life will be responsible for assessing affordability under MMR rules while brokers will be required to record income, expenditure and repayment strategy – which is why more 2 life has launched the affordability tool to support brokers.
Aaron Conlon, head of operations at more 2 life, said: “The switch over to MMR needs to be carefully planned for and supported which is why we are doing all we can to help brokers.
“The online affordability tool is an important part of the process to ensure a smooth transition for brokers and customers in order to help maintain equity release market growth.”
Applications for more 2 life loans received on or after April 7th will be considered under new MMR compliant rules including the affordability and expenditure evidence.
more 2 life’s focus on innovation has included the launch of enhanced equity release offering improved LTVs to customers with medical conditions or lifestyles affecting life expectancy and the Interest Choice Plan which enables customers to choose the level of interest they pay on loans and the term, while fixing their interest rate and having access to a lifetime drawdown facility.
Customers can choose to pay all or part of the monthly interest on their loan and choose how much to withdraw. Those who do not take the whole loan-to-value can make further withdrawals.