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Lifetime mortgages fall back into the fives

ended 28. November 2022

A Newspage Equity Release broker, Stuart Powell, has alerted us to the fact that he and a few others were asked to join a call with a major Lifetime Mortgage lender's Senior Management team on Friday. They wanted to know how the current market was and what help they needed from brokers. He replied that a Lifetime Mortgage interest rate starting with a 5 would be nice and, this afternoon, he received the email below. More2Life are now offering a rate of 5.94%. Any thoughts about this lender in particular and what this means for lifetime mortgages more broadly, send them across ASAP.

“I want to report that we have been able to work with our funder to deliver the interest rate that you requested on our Friday afternoon call. You told us that being able to offer “rates from 5.99%” was an emotional and commercial advantage when talking to customers so More2Life have delivered this for you. You asked, we listened and we delivered.  We will continue to deliver as many positive outcomes as humanly possible over the coming days, weeks and months as we continue to support that market in the new normal.”

7 responses from the Newspage community

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Stuart Powell
Managing Director at Advice Guru
For a lender to invite brokers on a call to find out what they need is pretty rare. For them to then act on the requests by brokers is unheard of, especially when the request was for slightly lower interest rates. In a toughening market, lenders and brokers working together like this has to be in the best interests of all those looking to borrow. This is great news for consumers. Chapeau More2Life.
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Aaron Strutt
Product and Communications Director at Trinity Financial
It is incredibly positive to see headline rates dipping below 6% although many lenders are still charging in excess of 7%. Much more needs to happen before this sector is offering appealing lifetime mortgage products to consumers again.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
More2life have been one of the market leaders on rates and their evolution of product features over the past 24 months has been really pleasing to see. With a sub-6% product they are anticipating gilt rates won’t rise that much further, and I think they’re right. I’m sure more lenders will follow suit.
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Justin Moy
Managing Director at EHF Mortgages
It's great to see a lender like More2Life appeal for help and support from the broker community, and then be able to deliver. Time and time again they are modern innovators in what is a mature market. It would be great if a few more lenders looked to do this, too, as intermediaries arrange over 75% of all mortgages written, and our input can be invaluable.
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Riz Malik
Independent Financial Adviser at R3 Wealth
There was no reason for the lifetime market not to follow the conventional market and reduce rates. Given the rise in the lost labour force, living inheritences and increased cost of living, further rate reductions and competition are welcomed.
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Dan Osman
Head of Later Life Lending (Age 55+) at UK Moneyman
More2Life were the most progressive lender when they entered the lifetime mortgage market and it is no surprise, and very good news, to see them leading the way here. Their Director of Manufacturing has a great reputation for driving improvement across both development and delivery. It can only be good that More2Life's drop will trigger similar drops from other lenders. 6% has been a threshold for many aspirational borrowers in a position to wait before going ahead and may be what has been needed to kickstart the market again. Sadly many borrowers acting from need may not benefit unless they are in a position to delay completion until rates decrease.
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
It’s great to see lenders working with brokers. More2Life have been proactive throughout this whole period keeping up to date and not really making to many changes. Hopefully plenty more lender will follow the path more2life have laid. I just hope they can now keep up with the influx of business coming there way