more2life launches sub-6% lifetime mortgage following broker feedback

Equity release broker, Stuart Powell, alerted PR platform Newspage to the fact that he and a few others were asked to join a call with more2life's senior management team on Friday. They wanted to know how the current market was and what help they needed from brokers. He replied that a lifetime mortgage interest rate starting with a 5 would be nice and later received the following email:

“I want to report that we have been able to work with our funder to deliver the interest rate that you requested on our Friday afternoon call. You told us that being able to offer “rates from 5.99%” was an emotional and commercial advantage when talking to customers so more2life have delivered this for you. You asked, we listened and we delivered. We will continue to deliver as many positive outcomes as humanly possible over the coming days, weeks and months as we continue to support that market in the new normal.”

More2life are now offering a rate of 5.94%.

Stuart Powell, managing director at Ocean Mortgages, said: "For a lender to invite brokers on a call to find out what they need is pretty rare. For them to then act on the requests by brokers is unheard of, especially when the request was for slightly lower interest rates.

"In a toughening market, lenders and brokers working together like this has to be in the best interests of all those looking to borrow. This is great news for consumers. Chapeau more2life.

Samuel Mather-Holgate, IFA at Mather and Murray Financial, commented: "more2life have been one of the market leaders on rates and their evolution of product features over the past 24 months has been really pleasing to see. With a sub-6% product they are anticipating gilt rates won’t rise that much further, and I think they’re right. I’m sure more lenders will follow suit."

Aaron Strutt, product and communications director at Trinity Financial, said: "It is incredibly positive to see headline rates dipping below 6% although many lenders are still charging in excess of 7%. Much more needs to happen before this sector is offering appealing lifetime mortgage products to consumers again."

Dan Osman, head of later life lending at UK Moneyman, commented: "more2life were the most progressive lender when they entered the lifetime mortgage market and it is no surprise, and very good news, to see them leading the way here. Their director of manufacturing has a great reputation for driving improvement across both development and delivery. It can only be good that more2life's drop will trigger similar drops from other lenders. 6% has been a threshold for many aspirational borrowers in a position to wait before going ahead and may be what has been needed to kickstart the market again. Sadly many borrowers acting from need may not benefit unless they are in a position to delay completion until rates decrease."

Justin Moy, managing director at EHF Mortgages, added: "It's great to see a lender like more2life appeal for help and support from the broker community, and then be able to deliver. Time and time again they are modern innovators in what is a mature market. It would be great if a few more lenders looked to do this, too, as intermediaries arrange over 75% of all mortgages written, and our input can be invaluable."

Les Pick, director of manufacturing and adviser proposition at more2life, commented: “Having listened to feedback from advisers and acutely aware of the growing needs of our customers, we are delighted to announce that our Flexi Choice lifetime mortgage has rates which start at 5.94%. The past two months have been somewhat of a rollercoaster for the market but we’ve remained focused on supporting advisers with a range of innovative products, tools and approaches which are designed to help them as they find the best option for their clients individual circumstances. As we head towards the new year, hopefully this move will serve to provide brokers with increasing confidence that the right solutions are available for their customers.”