It now offers 25% interest-served option for wider availability of its product
Equity release lender Standard Life Home Finance has expanded its Horizon Interest Reward product to include a new 25% interest-served option and enhanced rate discounts for customers.
The product allows customers to receive rate discounts by committing to make regular monthly interest payments on their lifetime mortgage for a certain term.
The newly introduced 25% option aims to broaden access to the Horizon Interest Reward product, providing customers the opportunity to reduce their borrowing costs by servicing a portion of the interest. Depending on the amount of interest paid and the length of the term, customers can unlock varying discounts.
Servicing 25% of the interest on a Horizon 300 plan could lead to rate discounts ranging from 0.03% in five years to 0.09% in 15 years. Moreover, committing to a 100% interest payment on the Horizon 530-620 plan could result in a 0.75% discount over 15 years. The plans are open to applications from customers between the ages of 55 and 84.
The Horizon Interest Reward product , introduced earlier this year, also maintains a No Negative Equity Guarantee, ensuring that borrowers and their estates will not owe more than their home’s market value. Customers can also make voluntary partial repayments, with up to 10% of the initial loan repayable in a 12-month period without incurring extra charges.
“As the typical profile of later life lending customers evolve, so too must the range of products available to them on the market,” said Kay Westgarth (pictured), sales director at Standard Life Home Finance. “This latest update to our Horizon Interest Reward product will enable even more homeowners to reap the benefits of lower interest rates and larger discounts.
“The next generation of homeowners are likely to lean on later life lending to support their mortgage repayments throughout their life, and so we are committed to offering flexible and affordability-centred options.
“Advisers play a crucial role in laying out all of the options available to customers to make sure people take out the right products that meets their personal needs.”
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