The Flexi range is designed for borrowers who want to make ongoing voluntary payments without charge. There are three options, including Flexi and Flexi Interest Reward – where borrowers can get a discount on their interest rate for making regular payments – and Flexi Premier.
More2life said the shorter ERC period reflected a change in how long borrowers needed to commit to the product and was in response to feedback from advisers.
The update is expected to help advisers give clients a clearer framework around possible repayment scenarios and make it easier for borrowers who want to repay earlier because of changes in health, family needs or property plans.
The ERC reduction applies from today.
Further, More2life has added an Age Next Birthday (ANB) feature for advisers and lifetime mortgage clients using the Air Sourcing and AdviseWise sourcing systems.
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The ANB feature allows clients to request Key Facts Illustrations (KFIs) based on the younger applicant’s upcoming age, as long as their birthday is in the next 50 days.
This means they can potentially complete on a higher loan amount before their birthday, and this enables borrowers aged 54 to request a KFI before completing at the age of 55, subject to conditions.
Giving more opportunities to lifetime mortgage borrowers
Dave Harris, CEO of More2life, said: “Flexi has been one of our most popular plans for many years, and this shift to a 10-year ERC period reflects what advisers have told us they need for clients. It reflects how borrowers are increasingly living their lives and gives advisers the option to provide their clients with a shorter ERC commitment while keeping the core strengths that make Flexi so useful in so many cases.
“Advisers have told us they want this so they can recommend a flexible, competitively priced lifetime mortgage with built-in safeguards that align with the real-life wants and needs of their clients.
“We’ve also been able to bring in our new ANB function, which opens up a wider range of options for advisers, even supporting those clients who are close to 55, in order that they can complete after their birthday. ANB is currently available to users of Air Sourcing and AdviseWise, with plans to roll this out across other platforms soon.”
He added: “These steps come in the same week that Horizon and Horizon Interest Reward joined our range, giving advisers even more ways to shape suitable outcomes.
“All of the above are part of the same aim at More2life. We want advisers to make more of the later life client opportunities available to them, and by utilising these clearer tools, stronger options and growing levels of support from us, we believe they’ll be able to develop a much stronger advisory proposition tailored to these clients.”
