Chief of later life lender outlines thought process
more2life has expanded the distribution footprint of its flexi-choice equity release plan, which will see the number of advisers able to offer the plan to their customers rise from 500 to over 4,500.
Mortgage Introducer spoke with the later life lender to find out why it has chosen to expand now, why it expects to see high demand for this offering, and how brokers will benefit.
more2life expansion
Ben Waugh (pictured), managing director of more2life, said flexi-choice was already one of the most competitive product ranges available on the market, but given the current economic backdrop, he added the lender felt it was important to widen access to as many advisers as possible.
“While green shoots are starting to appear in the later life market, we cannot ignore the challenge of increasing rates and we want to provide advisers with all the support they can get,” he said.
Customers on the flexi-choice, Waugh added, can access the lowest rates currently on the market, and will also receive a free Energy Performance Certificate (EPC) so they can better improve their property’s efficiency.
High demand
The rates, which start at 5.98% MER for properties up to £2 million, Waugh said, are among the best on the market, and so he expects a lot of attention in the coming months.
“Our flexi-choice product includes a service promise which guarantees a 10-day application to offer process, with the customer receiving £500 if we fail to meet this deadline,” he said.
In addition, Waugh said if the lender moves the subsequent completion date, its clients receive an additional payment of £200.
Waugh said this promise boosts the proposition further, as he believes advisers and customers know that the lender is as dedicated as they are to providing support quickly.
“Rates are higher in the current market than they have been for some time, and many customers are beginning to realise that they are unlikely to fall in the short-term,” Waugh said.
As a result, he said borrowers are exploring all available avenues and really examining the full range of products on offer in order to find an option that suits their individual financial needs.
Benefiting brokers
In the current environment, Waugh said advisers are focused on supporting their clients, and he believes anything which can help them do so is very welcome.
“Although there is an acceptance that higher rates are here to stay for a while, being able to tell your client that you have access to the best rates on the market is a real bonus for a firm,” he added.
While the most recent Equity Release Council (ERC) results show that total lending fell slightly quarter on quarter to £664 million in Q2, Waugh said the equity release market has held strong, and customers are still interested in exploring their options in the later life market.
The ERC data, Waugh said, suggested that new customer levels began to pick up towards the end of the quarter, rising to 2,462 in June, a 23% increase from April.
“So, with more customers investigating their options, advisers are keen to offer them access to the widest range of later life lending products with the best rates,” he added.
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