MortgagesAug 12 2016

More 2 Life cuts lifetime mortgage rates

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More 2 Life cuts lifetime mortgage rates

More 2 Life has announced its lowest ever lifetime mortgage, a monthly rate of 4.69 per cent on its Capital Choice Plan.

The equity release lender stated this product is suitable for clients who are looking for a higher lump sum and the ability to make partial capital repayments from day one.

Stuart Wilson, channel marketing director of More 2 Life, said the rate reduction demonstrates the firm’s competitiveness in the intermediary market.

“We are committed to offering innovative products that will enable consumers to access the wealth stored in their properties,” he said.

“By bringing new products and features to the market we are able to offer better options, and the Capital Choice Plan is a prime example of this, with it offering the best partial capital repayment option currently available on the market.”

As at the end of the second quarter, More 2 Life had doubled its market share by volume compared to the same period in 2015, in line with the market in general, which is on course for another record-breaking year of lending.

The latest quarterly lending figures from the Equity Release Council showed wider market lending passed the £500m mark in the second quarter.

It was the first quarter on record to reach that level and meant the three busiest quarters for equity release have all come in the last 12 months.

Mr Wilson said with more funders and lenders entering the market and prices beginning to fall, he predicted over £2bn of wealth being unlocked by the end of the year.

“The market is flourishing, not only due to increased competition from new entrants joining the market and a widening wider range of products on offer, but also an increase in the number of intermediaries advising on equity release,” he added.

Earlier in the month, More 2 Life stated it had grown its adviser market share to 15 per cent in the second quarter, retaining its position as the third largest lender in the UK by volume of sales, but called for more advisers to make unlocking equity part of their client retirement planning discussions.

Simon Webster, managing director Facts & Figures Chartered Financial Planners, said when compared to when rates were 6 per cent plus this is great news.

“But sadly rates will doubtless rise over time. The best rate I know of now is 4.67 per cent from Aviva, so this compares pretty favourably,” he added.

peter.walker@ft.com