Capital Choice Lite offers borrowers new rates and loan-to-values (LTVs), enabling them to release equity from their homes at a monthly interest rate (MER) at 4.02% for lump sum and 4.32% for draw down plans.
The products are available through advisers for all homeowners aged 55 and over.
Capital Choice Lite offers fixed early repayment charges, partial repayments from day one, downsizing protection and inheritance protection of up to 50 per cent.
The plans are suitable for homeowners who are looking to borrow between £15,000, up to a maximum of £1.5m, with the ability to make partial capital repayments from day one.
Homeowners also have the option of the draw down plan if they would like to take out further equity from their facility from £2,000 up to a maximum draw down of double the initial loan amount.
Industry to focus on innovative products
Dave Harris, CEO at More 2 Life (pictured), said that the team is delighted to announce the launch of these products, which meet the needs of the growing equity release market.
“We have worked closely with advisers to develop products that their clients want and that provide them with the flexibility they need.
“The lifetime mortgages market has experienced a staggering 25% annual increase in new loans over the last year, according to the Equity Release Council’s Spring Market Report.
“In order to continue this robust growth, the industry must continue to focus on creating innovative products with the modern lending features. Due to increased competition in the market this has driven equity release interest rates to some of the lowest they’ve ever been.
“Increased product innovation gives borrowers more choice when accessing the wealth tied up in their homes – and more 2 life intends to be at the forefront of these exciting market developments.”