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more2life introduces ERC-free lifetime mortgage: "This is a breakthrough moment for the equity release market"

ended 15. October 2024

Equity release experts have hailed a new product as “revolutionary”, “truly innovative” and “a breakthrough moment”. Lender more2life's Maxi Zero is the first and only ‘lifetime’ mortgage that comes with no early repayment charges (ERCs). It's designed for people who anticipate changes in their personal circumstances, and enables them to repay some or all of their lifetime mortgage without facing any penalties. Maxi Zero is available as an option on the Maxi Super 1, 2, and 3 plans. It features a 0.75% reduction in processing fees compared to the standard Maxi fees, with an arrangement fee of £1,199 applicable.

 

7 responses from the Newspage community

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Simon BridglandVerified
Director at Charwin Private Clients
Innovation has been so desperately needed in the later life sector, and this product offers it in spades. It's not surprising to see More2Life is the first to come out with a zero-redemption penalty product. It was only a matter of time as users of lifetime mortgages no longer look at them as a loan of last resort, more as a loan with flexibility. Users of lifetime products are becoming younger, with needs that most existing products simply don’t cater for. The arrangement fee is not a particularly large hurdle as those using this type of product are likely to have available funds to pay for it, and it mirrors many we see on traditional mortgages. This really does start to help plug that gap between traditional and later life mortgages.
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Darryl DhofferVerified
Founder at The Mortgage Geezer
More2life's no-ERC Lifetime Mortgage is a truly innovative product that has the potential to redefine the lifetime mortgage market. By eliminating ERCs, More2life is empowering homeowners to take control of their financial future and protect themselves from the uncertainties of the current economic climate. This is good news if rates reduce over coming years as it gives borrowers flexibility to switch without penalties.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
One small step for More2Life, one giant leap for equity release flexibility. For too long too many equity release borrowers have been handcuffed to an often uncompetitve deal, and have been unable to reduce or repay their debt without excessive fees. Whilst this product still has its balances from arrangement fees, it is a step in the right direction and hopefully will see the rest of the market follow suit with similar options.
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Iain SwattonVerified
Managing Partner at Later Life Property
More2Life’s ERC-free product is an exciting development in the later-life lending market, offering flexibility that has been hard to come by. The ability to repay a loan early without facing penalties is a significant benefit for clients, especially those considering future downsizing, paying off their mortgage early, or planning for other lifestyle changes. While this product may come with slightly higher interest rates, the trade-off for freedom and flexibility is likely to appeal to a wide range of borrowers. More2Life has taken a bold step, and this offering is set to give clients much greater control over their financial decisions—an important factor for later life clients looking for peace of mind. It’s a product that could shift the landscape of equity release and later-life lending, and signals an exciting new direction for the industry.
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Mark Scott0
Director and IFA at Positive Advisers Ltd
This is a breakthrough moment for the equity release market. This lifetime mortgage product will add flexibility to a previously inflexible marketplace. I can envisage people using this as a short-term product if they want to downsize later. They may use it before locking into a more traditional lifetime loan if and when the rates are lower.
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Justin MoyVerified
Managing Director at EHF Mortgages
This is a revolutionary innovation by More2Life, as equity release products have traditionally been long-term deals. Several providers now have much shorter Early Repayment Charge periods making them more attractive to their market. This no-ERC version is ideal for those with short-term requirements and those who want to retain plenty of flexibility. More2Life have again listened to the feedback and continued to innovate; not only have they relaunched their 4-year ERC product a few weeks back, but now added this Maxi Zero option, too.
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Patricia McGirrVerified
Founder at Repossession Rescue Network
It’s rare to see true innovation in a market that has become staid, but this lender has delivered. Giving homeowners the freedom to repay a lifetime mortgage without the usual penalties is a breath of fresh air. In a world where mortgages can feel like a financial straitjacket, this kind of flexibility is long overdue.