More2life has launched a new lifetime mortgage product that eliminates early repayment charges (ERCs), a significant development in the UK mortgage market. The Apex Zero product is designed for borrowers aged 55 to 95 who may need flexibility in their repayment options due to changing circumstances.
What is the Apex Zero product?
The Apex Zero product allows applicants to secure loan-to-values (LTVs) ranging from 23% to 51% on both single and joint life bases. The interest rate is set at 9.24% MER. Importantly, customers can make unlimited optional repayments throughout the loan term without incurring penalties, provided they meet a minimum monthly payment of £50. This product is available on a lump sum basis and carries an arrangement fee of £1,495 for initial advances and £395 for further borrowing.
Why is this significant for borrowers?
This new offering addresses a common concern among older borrowers who may face changing financial situations. By removing ERCs, More2life provides a safety net for those who might want to repay their mortgage early without facing additional costs. This flexibility can be particularly beneficial for individuals who anticipate changes in income or health that could affect their ability to maintain regular payments.
Impact on the mortgage market
The introduction of the Apex Zero product reflects a growing trend in the mortgage market towards greater flexibility and customer-centric offerings. As lenders respond to feedback from advisers and borrowers, we may see more products designed to cater to the unique needs of older homeowners. This could lead to increased competition among lenders, potentially benefiting consumers with more options and better terms.
Frequently asked questions
Who can apply for the Apex Zero lifetime mortgage?
The Apex Zero product is available to applicants aged between 55 and 95 years old.
What are the fees associated with this mortgage?
There is an arrangement fee of £1,495 for initial advances and £395 for further borrowing on the Apex Zero product.