The equity release lender said the new ‘Tailored Enhanced’ and ‘Tailored Lifetime’ plans would replace its current ‘Tailored Plus’ and ‘Tailored Lite’ plans respectively.
ERCs in the first year of the loan will start at 10% and decrease by 1% each succeeding year for the first 10 years, remaining at 1% until year 15 and then 0% thereafter.
Applications for the current gilt-based Tailored Plus and Tailored Lite plans will be allowed for two weeks following the launch of the refreshed plans, until 11.59pm on Tuesday 18 August 2020.
Further advances and drawdowns will still be available for existing customers with a Tailored plan who completed their initial advance on gilt-based terms.
Stuart Wilson, corporate marketing director at more2life, explained: “While gilts can offer some customers a good deal depending on the timing of redemption, for borrowers who would like greater control over repayments – particularly in the current climate – the refreshed Tailored range will give them exactly that.
“Since 2016 more than 1,000 more2life customers have redeemed their loans voluntarily. With fixed ERCs now as standard across our range, more2life customers – including now those who are recommended one of our Tailored plans – have a surety regarding how much they would need to pay in the unlikely event that they redeem their plan.
“We are delighted to be able to bring this level of flexibility and choice to the later life lending market.”
Criteria updates
more2life is also updating the lending criteria across its Tailored range, with changes including:
A maximum loan amount of £800,000 for properties in England, up from £600,000
A cash facility option available up to maximum loan-to-value (LTV) less the initial advance, subject to a maximum unused facility of £200,000
Properties with up to 30% flat roof, thatched roofs or built with modern methods of construction will be considered
Flats above or adjacent to commercial properties can be referred to the lender
The Tailored plan range is available to customers aged 55 and over, offering enhanced LTVs (Tailored Enhanced), competitive rates and the option to make ERC-free partial repayments of up to 10% each year. Borrowers can withdraw loans either via a lump sum or drawdown facility.
