A new lifetime mortgage product is shaking up the later life lending market.
- The product, named Apex Interest Reward, offers partial interest payment options.
- Discounts are available based on the percentage of interest paid by the client.
- Clients benefit from a safeguard ensuring their home is not at risk during the term.
- More2life’s approach aims to broaden choices for over-55 borrowers.
The introduction of the Apex Interest Reward is making waves in the lifetime mortgage sector by offering a solution tailored for those seeking to manage interest payments actively. This option enables clients to make partial interest payments, thus reducing the overall cost of borrowing. This product also offers a unique advantage by providing discounts that vary depending on the percentage of interest paid by the client. For instance, a 25% monthly interest payment allows for a 0.30% discount, rising to 0.55% for 50% payments, and 0.75% for those who pay 75% of the monthly interest. This flexibility is especially useful for those looking to balance their financial commitments while enjoying reduced interest rates.
The Apex Interest Reward product boasts initial interest rates starting at 7.81% MER and offers a loan-to-value ratio of up to 52%. This product has been designed with client security in mind, adhering to Equity Release Council standards, which ensure that the client’s home remains safe during the payment term. What is important to note here is that the discounts remain valid throughout the payment period, which can extend up to 15 years, regardless of one’s ongoing payment status.
In addition to its competitive rates and security features, the Apex Interest Reward allows for overpayments up to 10% of the initial loan amount without incurring any penalties. Furthermore, clients can take payment holidays equivalent to three months, providing additional flexibility. These provisions reflect more2life’s commitment to addressing the distinct needs of their clientele, particularly older adults who may have fluctuating financial circumstances.
Ben Waugh, the managing director of more2life, expressed the company’s ongoing quest to serve the needs of advisers and borrowers aged over 55. He stated, “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”. Notably, the product offers the shortest fixed early repayment charge period in the market, alongside generous loan-to-value options. This could particularly appeal to those who are approaching remortgaging, offering them a broader scope of choice.
This product launch follows swiftly on from more2life’s recent rollout of the Maxi Zero ERC product and the re-launch of the Apex offering. According to Waugh, these products significantly diversify options available to those entering the later life lending sector. The array of features is designed to ease the financial journey for clients, this includes those seeking a straightforward transition into borrowing in later life.
The Apex Interest Reward mortgage marks a significant step forward in broadening the financing possibilities for over-55 borrowers.
