The first ever lifetime mortgage where no repayment charges apply has been launched by More2life.
The new mortgage, Maxi Zero ERC, is 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.
More2life managing director, Ben Waugh, 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.”
Maxi Zero ERC comes with several key criteria highlights, including being available to clients aged between 55 and 89, LTVs being offered at between 20.5 and 49.5 per cent, and loans being available from £15,000 to £700,000.
Equity Release Supermarket founder and CEO, Mark Gregory, said: “The introduction of More2life’s Maxi Zero ERC product brings about further positive change for our industry.
“Our advisers will welcome the addition of this innovative, flexible product to our independent, whole-of-market advice process.”
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 one, 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 rates start at 6.77 per cent MER and the product is currently available through a limited number of distributors such as Air members and selected specialists like The Later Life Lending Network and Key.
tom.dunstan@ft.com
