more2life, a later life lender, has introduced a new lifetime mortgage product called Apex Interest Reward. This product offers interest rate discounts to clients who commit to partial interest payments.
The discounts vary based on the percentage of interest paid. Clients paying 25% of the monthly interest will receive a 30-basis-point (bps) discount, while those paying 50% will get a 55bps discount, and clients covering 75% will benefit from a 75bps reduction. Rates on the Apex Interest Reward product start at 7.81% MER, with loan-to-value ratios up to 52%.
A key feature of Apex Interest Reward is its four-year fixed early repayment charge (ERC) period. This flexibility, combined with no affordability checks and the ability to make overpayments of up to 10% of the initial loan without penalty, aims to provide a cost-effective option for homeowners over 55 looking to release equity. Clients who maintain payments will retain their rate discount for up to 15 years, and if payments continue beyond this period, the discount will end, but outstanding balances will be added to the total loan amount rather than extending the payment term.
The product complies with Equity Release Council standards, ensuring that clients’ homes are protected even if they stop making payments. Apex Interest Reward is available to clients aged 55 to 84 and offers flexible features, including the option to take payment holidays of up to three months without losing the interest rate discount. The product is accessible through whole-of-market adviser distribution.
