New feature offers personalised interest rates based on affordability and real-time pricing
Later life lender more2life has introduced its new Flexi Interest Reward feature, a lifetime mortgage designed to offer personalised interest rates based on a client’s ability to make monthly payments.
The feature, part of more2life’s Flexi lifetime mortgage range, uses live pricing to determine individual rates. Borrowers who make payments can reduce their overall cost of borrowing, although the product does not rely on credit scores and does not risk home repossession if payments stop early.
Interest rate discounts are customised, with borrowers agreeing to a fixed payment schedule. Discounts at launch range from 0.05% to 0.75%, remaining in place for life as long as all payments are met. Clients can also choose to pay more than the monthly interest due, typically securing a larger discount.
In addition to fixed payments, overpayments are permitted, allowing borrowers to further reduce borrowing costs. Combined payments — including fixed and voluntary overpayments — are capped at 10% of the original loan amount per year during the early repayment charge (ERC) period.
Flexi Interest Reward is available to borrowers aged 55 to 82 plus 364 days, with a maximum loan-to-value (LTV) of 48% and a 15-year ERC period. The product meets Equity Release Council standards, ensuring clients will not owe more than their home’s value and that their rate remains fixed for the mortgage term, provided payments are made.
The lender has also introduced a flexible approach to missed payments. If a borrower falls no more than three months into arrears, they can retain the full Interest Reward discount by repaying the shortfall within that period. If the discount is lost due to missed payments, a portion may still be retained if at least 25% of the agreed payment plan has been met, including voluntary overpayments.
“We continue to look at ways to offer bespoke, personalised solutions to lifetime mortgage customers, giving them control over payments and certainty on discounts,” said Dave Harris (pictured), chief executive of more2life. “Flexi Interest Reward does all this, allowing advisers to assess affordability and secure personalised pricing at that moment in time to ensure we provide as competitive a rate as possible.”
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