More2life has launched a lifetime mortgage where no early repayment charges (ERCs) apply.
Based on more2life’s current Maxi Super 1, 2 and 3 lifetime mortgage products, Maxi Zero ERC supports clients who have an immediate financial need but anticipate their circumstances may change in the period where ERCs typically apply.
Maxi Zero ERC is available to clients aged between 55 and 89 years old. LTVs are offered at between 20.5% and 49.5%. Loans available from £15,000 to £700,000.
There is no partial repayment limit – the client is free to repay their lifetime mortgage in full at any point without incurring an ERC.
Drawdown options are available and an arrangement fee of £1,199 for the initial advance and £499 for any further advance.
Maxi Zero allows an indefinite ERC Exemption window for joint life cases, meaning when the first borrower either passes away or goes into long-term care, the remaining borrower can repay the loan in full without incurring an ERC.
It is also the first more2life plan that offers the ability to downsize from Day 1, where if the client wishes to downsize to a property outside of the lender’s criteria, they can repay the loan in full without incurring ERCs.
Maxi Zero ERC rates start at 6.77% MER and the product is currently available through a limited number of distributors including Air members and selected specialists, such as The Later Life Lending Network, Key, and Mortgage Advice Bureau (MAB).
Commenting on the launch managing director for more2life Ben Waugh said:
“To say we‘re excited about the launch of this new Maxi Zero ERC product would be an understatement. We believe it is a complete game-changer for the lifetime mortgage market, advisers, their clients, and the wider later life lending space.
“To have a product with no ERCs is going to provide advisers with an enhanced option, especially those who have homeowner clients whose circumstances might change within a relatively short space of time. Not only could this product provide the finance the client needs from the outset, but it also allows them to pay off their lifetime mortgage at any point with no charges at all.”
