Equity release lender More 2 Life has launched two products for older homeowners as part of a revamp of its existing tailored range.
The drawdown product is an update of its 'Tailored Choice' plan and is available to all homeowners aged 55 and over though an adviser.
Homeowners must have a minimum property value of £70,000 and the product includes a flexible repayments option, three-year early repayment charge exemption, a drawdown facility from £2,000, and up to £6,000 cashback.
The partial repayment option allows early repayment charge-free payments of up to 10 per cent of the initial loan from day one (deducted from the outstanding balance), with up to six payments allowed per 12-month period.
The second new product is a lump sum plan for those aged between 60 and 84 years with a minimum property value of £100,000.
‘Prime Plus’ is an updated version of the existing ‘Prime Choice’ product that has a loan to value ratio of up to 56 per cent and ERC exemption for those who are downsizing.
The product has an uncapped guaranteed inheritance feature, allowing borrowers to protect a percentage of their home’s future value as inheritance.
Dave Harris, CEO at More 2 Life, said: “The launch of our two new plans once again highlights our commitment to driving innovation in the market and offering clients a range of products that include a number of useful features.
"By working closely with advisers, we have built on our popular Tailored Choice and Prime Choice products to develop our latest offerings and meet the changing needs of today’s retirees.
“Equity release continues to be a popular solution for older homeowners who are looking to boost their income. However, in order to sustain the growth that we have seen in the market in recent years, it’s vital for lenders to continue to create innovative products with modern lending features.”
Analysis of the equity release market in the first half of 2019 by equity release adviser Key found that sales of plans increased by 1,192 when compared with the same period in 2018 – a 5.6 per cent rise.
According to the research, drawdown remained one of the most popular types of plan, while lump sum releases accounted for more than a quarter of new business.
Will Hale, CEO at Key, added: “In the last year the equity release market has benefited from the arrival of new sources of funding which has resulted in a particularly competitive lender landscape which has kept rates at historic lows and seen the launch of various new products.
“As such the market has seen a 4 per cent increase in the number of people coming back to ‘rebroke’ their existing equity release plan.
"By doing this advisers can help many customers benefit from a lower interest rate and/or release additional equity due to house price increases and the higher LTVs available at older ages or perhaps as health deteriorates.”