The product is available from today.
It is called Apex Interest Reward and builds on the later life lender’s Apex product.
The size of the discount available varies based on the percentage of the interest paid.
The product also offers the shortest fixed early repayment charge (ERC) period on the market, at just four years.
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Interest payments with discounted rates
For a 25% interest payment each month, the client will receive a 30 basis point (bps) discount on the product rate, while the discount is 55bps for 50% and 75bps for 75%.
Rates on the Apex Interest Reward product start at 7.81% MER, with loan to values (LTVs) up to 52% available.
Clients benefit from the rate discount for the duration of the contractual payment period, providing the client makes all payments.
It will finish at the end of 15 years irrespective of payments being maintained beyond this.
The product meets Equity Release Council standards, with the client’s home never at risk during the payment term, while overpayments are allowed from day one.
The lender said the new product provided a flexible and cost-effective solution for home owning clients who wanted to access the equity in their home via a lifetime mortgage and combine this with a reduced interest rate based on maintaining consistent interest payments.
Overpayments of up to 10% of the initial loan can be paid without penalty in addition to the customer’s monthly payment.
Payment holidays are available up to the equivalent of three months of payments before any loss of rate discount.
The Apex Interest Reward product is available to clients over 55 years of age, up to 84 plus 364 days.
Ben Waugh, managing director of More2life, said: “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.
“We are constantly seeking new ways to meet the needs of advisers and their over-55 borrower clients, and this product offers those who wish to keep on making interest payments for a fixed term to do so, but also benefit from a rate discount.”
In September, More2life launched a lifetime mortgage with no ERCs.
