Leading lifetime mortgage lender more2life has underlined its commitment to increasing choice in the later life market, through the launch of a new early repayment charge (ERC) free option.
The lender’s Apex Zero product aims to help borrowers who believe their circumstances might change within the period that ERCs would usually apply. Available to applicants aged between 55 and 95 years old, it offers LTVs between 23% and 51% on both a joint and single life basis and an interest rate of 9.24% MER.
Customers can make unlimited optional repayments at any time during the loan term without incurring penalties, with a minimum monthly payment of £50. Additionally, it has an indefinite ERC exemption window for joint life cases, allowing the second borrower to repay the full loan balance without any ERCs when the first borrower passes away or enters long-term care.
Available solely on a lump sum basis, Apex Zero also offers further advance options, as well as downsizing protection from day one. It has an arrangement fee of £1,495 on initial advances, and £395 on further borrowing.
The latest development follows on from more2life’s market-first zero-ERC product, Maxi Zero, which launched in 2024.
Speaking of the latest product launch, more2life’s CEO Dave Harris says: “it’s exciting to be able to continue to innovate in the later life lending space, and actively responding to feedback from our adviser network around greater product choice for customers. People are increasingly looking for flexibility in their retirement planning, and the launch of Apex Zero reinforces our commitment to meeting these needs.
“Being able to provide the later life lending sector’s widest range of lifetime mortgages, suitable for a variety of customer circumstances, is something we’re really passionate about, and we’re pleased to continue delivering. This is just one of several key developments coming this year, and we’re proud to be continually evolving our offering to give over-55s as many options as possible.
“The latest launch sits as part of a constantly evolving landscape. Modern lifetime mortgages offer customers more choice than ever, allowing interest to be fully or partly paid, potential rate discounts for making regular payments or – as in this case - zero early repayment charges. Put simply, these are no longer fringe options for over-55 clients.”
Sam Wickham, Founder and CEO of Later Life Retirement Planning, adds: “The appetite for later life lending is clearly there, but unlocking the true potential of the market will depend on our ability as an industry to continue evolving the products and solutions available to clients.
“Zero ERC products are a great example of that evolution. They provide greater choice and flexibility, but importantly, they also give clients confidence that if their circumstances change, they have the ability to repay their lifetime mortgage without being penalised for doing so.
“We need products that reflect how people actually want to manage their finances in later life, rather than expecting clients to fit within traditional product structures, and it’s encouraging to see lenders prepared to challenge convention and take a more forward-thinking approach to product design. That kind of innovation is good for clients, good for advisers and ultimately good for the continued development of the later life lending market.”
Victoria Clark, Head of Lending at The Right Mortgage, adds “If our members tell us one thing, it’s the importance of having access to a wide range of products to support diverse client needs and priorities. Seeing products such as this, which enable clients to take out long-term borrowing without the fear of penalty if their circumstances change, is a major win for delivering great consumer outcomes across the financial services landscape.
“Additionally, it also offers a window to mainstream advisers into the sort of innovation taking place in the lifetime mortgage space, giving them a picture into the sorts of solutions available to their clients – even if they ultimately have to refer.”
