Equity release lender, more 2 life has added an additional feature to its capital choice plan for joint borrowers, allowing surviving spouses to repay the loan within three years of the death of their partner.
This is without incurring an early repayment charge (ERC) and will allow borrowers more flexibility should they want to sell their home, for example if they would prefer to downsize in the event that their partner passes away. This is the first time more 2 life has offered this feature on any of its products.
Dave Harris, chief executive at more 2 life, said: “It is great to be able to announce this new feature on our capital choice plan as we continue our commitment to putting customers first and working closely with our intermediary partners to develop products that their clients want.
“The equity release market saw record levels of growth in 2017. However, it is vital for lenders to drive innovation in the market further to enable more borrowers to access the equity locked in their property.
“All the signs are pointing towards equity release becoming a more mainstream approach of accessing cash during retirement.
“Therefore, it is imperative that older borrowers have a greater range of options available to choose from, which will provide them with the flexibility they require.”
The lender’s capital choice plan is a lump sum lifetime mortgage that offers a low rate of interest and flexible partial capital repayment option. It is suitable for clients who are looking for a higher lump sum and the ability to make partial capital repayments from day one if they want to.
Borrowers who opt for capital choice can also benefit from fixed ERCs offered as part of the plan, in addition to the plan’s market leading 10% ERC-free partial repayment option.
More 2 life have also added additional features such as a built-in guaranteed inheritance feature that allows borrowers to protect up to 50% of the value of their property.
It also gives downsizing protection, designed to give borrowers peace of mind should they need to sell their home and repay their loan in full.
Harris added: “Lenders must ensure they are continually innovating to both launch new products and enhance their current offerings to include valuable features for clients.
“At more 2 life, we are constantly looking to expand our own products with added features, and this latest development highlights our commitment to meeting the requirements of clients and intermediaries.”