MortgagesApr 16 2014

Launchpad: Equity release

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The online tool helps brokers assess whether the interest choice plan suits customers’ needs and produces a report to support an application for the plan.

Aaron Conlon, head of operations at More 2 Life, said: “The online affordability tool is an important part of the process to ensure a smooth transition to MMR for brokers and customers in order to help maintain equity release market growth.”

Key features

More 2 Life became fully MMR compliant from 7 April – two weeks ahead of the MMR deadline

The tool supports submission of more detailed information on affordability, and how customers plan to repay loans and pay the fees due.

The interest choice plan enables customers to choose the level of interest they pay on equity release loans and the term, while fixing their interest rate and having access to a lifetime drawdown facility.

Customers can choose to pay all or part of the monthly interest on their loan and can choose how much to withdraw.

Those who do not take the whole loan-to-value can make further withdrawals.

Adviser verdict

Dean Mirfin, group director at Key Retirement Solutions, said: “While the interest-serviceable loan from More 2 Life can automatically convert to roll-up at any time, responsible lending and responsible advice have to centre around setting the appropriate levels of affordability. The new MMR proposition from More 2 Life achieves the right balance. While more detail is required, the new online tool makes the process for advisers as straightforward as possible in providing MMR compliance but also sensible affordability strategies for clients.”