The product is in addition to its existing Omni range, which was launched last year, combining higher loan to values (LTVs) and short early repayment charge (ERC) terms.
The Omni Interest Reward allows borrowers to get a 0.4% discount on the interest rate if they commit to paying half of the monthly interest charged on their lifetime mortgages.
The product also gives borrowers the flexibility to miss up to three months of payments before the discount is automatically removed.
It has ERC periods of six years, one of the lowest available from More2life, and borrowers can make overpayments of up to 15%. It is available to borrowers aged up to 89, and LTVs range from 37% to 59.65% against properties worth between £115,000 and £3.5m.
The Omni Interest Reward will initially be open to a limited number of advice firms, including One Stop 4 Equity Release, Retirement Solutions and Eadon & Co, with a wider distribution planned.
The latest update comes after More2life has reduced the ERCs on its Flexi range to 10 years and integrated the Horizon product range into its suite of lifetime mortgage products.
Dave Harris, CEO of More2life, said: “The Omni product range has been designed to address clients who are crying out for greater flexibility, higher LTVs and low ERCs. This is where Omni shines. The addition of Omni Interest Reward brings further flexibility, through the ability to secure a substantial interest rate discount when committing to making repayments.
“Omni Interest Reward is initially only available to advisers taking part in the pilot scheme, though we look forward to expanding its distribution to more of the market in the future. The launch highlights our innovative approach to product design in the lifetime mortgage space, building on our relaunch of Apex and Apex Interest Reward already in 2026.”
He added: “This is a significant year for the industry, with the Financial Conduct Authority looking closely at the issue of holistic advice and the treatment of older borrowers. Innovations like Omni Interest Reward show providers are stepping up, designing new products [that] meet the needs of borrowers in a broad range of scenarios.
“The key now is for advisers to come on board, and ensure every client is assessed across all suitable options. Later life lending can no longer be viewed as a niche area of financial services, but instead a core, and normal, element of every adviser’s toolkit.”
Tim Eadon, managing partner at Eadon & Co, said the firm and Access Equity Release were pleased to see continued product development from More2life.
He added: “Omni’s higher LTVs provide additional borrowing capacity where needed and now, with the ability to secure a discounted interest rate through servicing some of the interest, clients can also help reduce the cost of borrowing.”
