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More2life’s Flexi Payment Term deal undergoes criteria changes in trial

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  • 24/05/2024
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More2life’s Flexi Payment Term deal undergoes criteria changes in trial
More2life’s Flexi Payment Term lifetime mortgage, currently being trialled with up to 15 broker firms, needs to be available to younger and older borrowers then its initial criteria allowed for, said managing director Ben Waugh (pictured).

Equity release brokers quizzed Waugh on when the Flexi Payment Term lifetime mortgage product would be available to the wider market, with More2life having announced a pilot launch in February.

Waugh said the product had attracted a lot of feedback from brokers in the trial, and as a result, the minimum and maximum ages would be improved. Once these final changes have been made, the product will be rolled out to the wider market.

“The testing we have done has given us an overwhelming level of feedback, not all of it good,” said Waugh, addressing a room of equity release professionals at the Equity Release Council’s (ERC’s) summit. “And that, in many respects, is why we wanted to launch the way we did. One of the [points] we got was that it needed to start younger.”

The minimum age will be lowered from 55 to 50 years old.

Waugh added: “At the moment, that product is restricted to a [maximum] age of 67. That needs to go higher. And I think that’s what we’ll see as we go through this year, younger and older ages, which will provide a much better LTV spectrum and [open up] a much bigger population of customers that this is the right solution for. We’re not there yet, but we’re starting in a place we’re comfortable in and we’ll build out from there.”

More2life is looking at standard mortgage platforms to see if it can display later life products side by side with traditional mortgages.

“We have to break down the old hierarchy, the old ways of doing things, because the world is changing so much so fast,” he added. “I don’t think we’ve all caught up as much as we need to. We’ve got one product out there to a pilot list of firms, that’s not enough. My whole agenda this year is product innovation and new products. But it’s also about going out and talking to distributors.”

Waugh also stressed the importance of assessing how much a borrower can afford to pay towards interest each month.

“Affordability-led advice is crucial in a high-interest-rate environment,” he added.

Last month, More2life increased the maximum loan to value (LTV) across all age bands in its Flexi Choice range for equity release deals.

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