More2life introduces Non-ERC lifetime mortgage

October 22, 2024 by Heidi

Mortgage Advisors

More2life has announced that it is bringing in a new lifetime mortgage product that comes without early repayment charges, marking the sole loan of its kind on the UK market.

The lender has tailored this product towards borrowers who expect their personal situations to change over time. It is being called Maxi Zero and will permit customers who take it out to pay back all or some of the amount borrowed with no additional cost for doing so. The absence of any charges for such early repayment makes it a novelty within the equity release section of the UK market.

Those within the mortgage sector have responded warmly to the news. One of those who praised the announcement by More2life was Mark Scott from Positive Advisers Ltd. He told FT Adviser that it was much-needed fresh thinking within the equity release sector.

Scott then continued by saying:

“I can envisage people using this as a short-term product if they want to downsize later. They may use it before locking into a more traditional lifetime loan if and when the rates are lower.”

Another industry figure that greeted the decision with applause was Simon Bridgland of Release Freedom. He pointed out that higher numbers of young people were now seeking out lifetime mortgages and that existing products did not really offer them the flexibility that they need.

More mortgage advisors are choosing to follow up CeMAP training by doing the CeRER course now. That is because equity release is a growing part of the UK market.