MortgagesSep 2 2015

Equity release specialist drops arrangement fees

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Equity release specialist drops arrangement fees

Retirement lending specialist More 2 Life has dropped arrangement fees in response to adviser and customer feedback.

The trial offer – which is subject to funding availability – means its Tailored Choice plan is effectively free to enter and aims to help customers and advisers speed up the application process.

Customers will no longer pay the £695 arrangement fee on the Tailored Choice plan for initial advances above £50,000 and can also benefit from an additional cashback of at least £500 on loans above £75,000.

Customer and adviser demand showed that some struggled to pay for initial fees and were concerned about paying upfront for applications.

Stuart Wilson, marketing director at the firm, said: “We’ve been listening to advisers and the clear message from them paying upfront charges can sometimes be difficult for customers and that plans needed to change to reflect that.

“Making plans free at the start specifically addresses that issue and should help advisers when outlining the costs and benefits of equity release to customers by making presentations simpler as they do not need to factor in arrangement fees.”

The minimum age for customers is 55 and the minimum property value is £60,000 with a maximum of £750,000.

The minimum loan is £15,000 and minimum additional drawdown amounts are £5,000.

peter.walker@ft.com