Apex Interest Reward lifetime mortgage product caters to clients seeking discounted rates through partial interest payments.
- Interest rate discounts are available based on the percentage of monthly interest paid, with figures ranging from 0.30% to 0.75%.
- The product meets specific standards that ensure the security of the client’s home throughout the payment period, lasting up to 15 years.
- The Apex Interest Reward facilitates overpayments without penalty and offers payment holidays to accommodate clients’ needs.
- This innovative solution targets those over 55 entering the later life lending market, providing flexibility and incentive.
The Apex Interest Reward product is a notable addition to the later life lending landscape, tailored to clients over the age of 55 who wish to manage partial interest repayments. This innovative mortgage product offers a tiered discount structure based on the percentage of interest payments made on a monthly basis. Clients paying 25% of their monthly interest are eligible for a 0.30% rate discount. Those who cover 50% of the interest enjoy a 0.55% discount, and clients making a 75% payment can avail of a 0.75% discount.
The introductory interest rate for the Apex Interest Reward stands at 7.81% MER, with Loan-to-Values (LTVs) accessible up to 52%. The discounts available through this scheme last for the duration of the payment term, which can extend up to 15 years, regardless of whether payments persist. This ensures clients are afforded some financial relief over a sustained period, enhancing their ability to manage their finances effectively.
A key feature of the Apex Interest Reward is its compliance with the Equity Release Council standards, ensuring that the client’s residence is safeguarded during the payment term. Furthermore, the product includes provisions for overpayments up to 10% of the initial loan amount without incurring penalties. This flexibility is complemented by the option to take payment holidays equivalent to three months, offering clients the opportunity to pause payments if their financial situation demands it.
Ben Waugh, managing director of more2life, emphasised the product’s role in driving innovation in the later life lending sector. He stated: “This product exemplifies our commitment to innovation, giving clients the opportunity to continue interest payments while benefiting from rate discounts.” The Apex Interest Reward is positioned to cater to a diverse audience, especially those transitioning into the later life lending market for the first time.
This strategic move follows more2life’s introduction of products like the Maxi Zero ERC, showcasing their commitment to expanding options within the market. The Apex Interest Reward is designed to provide advisers with a viable solution to present to clients, particularly those who may be approaching a remortgage scenario. It ensures a broad selection of choices is available, tailored to meet the needs and preferences of borrowers over the age of 55.
The Apex Interest Reward significantly enhances options and incentives in the later life lending market.
