more2life, the later life lender, has today (5th November 2024) announced the launch of its Apex Interest Reward product, a lifetime mortgage designed to reward clients for committing to make partial interest payments with discounted rates.
The Apex Interest Reward product builds on more2life’s Apex product – relaunched to market last quarter – while also offering interest rate discounts to clients who choose to make regular payments.
The size of the discount available varies based on the percentage of the interest paid with the product also offering the shortest fixed early repayment charge (ERC) period on the market, just four years.
For a 25% interest payment each month, the client will receive a 30 basis points (bps) discount on the product rate, for 50%, the discount is 55bps, and for 75%, the discount is 75bps.
Rates on the Apex Interest Reward product start at 7.81% MER, with LTVs up to 52% available.
Clients will benefit from the rate discount for the duration of the contractual payment period, providing the client makes all payments, and will finish at the end of 15 years irrespective of payments being maintained beyond this.
The product meets Equity Release Council standards, with the client’s home never at risk during the payment term, while overpayments are allowed from day one.
more2life said the new product provided a flexible and cost-effective solution for homeowning clients who wanted to access the equity in their home via a lifetime mortgage and combine this with a reduced interest rate based on maintaining consistent interest payments.
Apex Interest Reward offers:
- Interest rate discounts of up to 0.75% for the duration of the payment term.
- The shortest fixed ERC period in the market – just four years.
- No affordability checks.
- Overpayments of up to 10% of the initial loan can be paid without penalty in addition to the customer’s monthly payment.
- Payment holidays available up to the equivalent of three months of payments before any loss of rate discount.
- No extension of payment term required - any outstanding payments at the end of the 15-year payment term are added to the total balance.
- Available to clients over 55 years of age up to 84 plus 364 days.
Apex Interest Reward is available to whole of market adviser distribution.
The launch of this new product follows on from a number of other product launches in recent months from more2life, including its new Maxi Zero ERC lifetime mortgage, the only product available in the later life lending space with zero ERCs.
more2life’s product guide and full list of lending criteria is available to view by visiting its website at: www.more2life.co.uk/product/apex-interest-reward
Ben Waugh, Managing Director of more2life, said:
“The launch of this new Apex Interest Reward product is the latest example of more2life’s commitment to bringing genuine product innovation to the later life lending market. We are constantly seeking new ways to meet the needs of advisers and their over-55 borrower clients, and this product offers those who wish to keep on making interest payments for a fixed term to do so, but also benefit from a rate discount.
“Not only do we have this rate incentive, but we offer the shortest fixed ERC period in the market, high LTV availability, plus key features such as overpayments, and of course, the client’s home is never at risk, even if their circumstances change and they have to stop making payments early, unlike with other potential options such as a mainstream residential or a RIO product.
“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.
“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.”
