Now, in the final quarter of 2023, our industry is still feeling the effects of last September’s mini-Budget. For later life lending, we know the market drivers for later life lending remain strong, and client challenges such as pension incomes failing to keep up with inflation, the need to repay secured borrowing before retirement and the desire to support family members have arguably increased in recent months.
The most recent industry data from the Equity Release Council suggests that there are signs the market is beginning to turn around. We are operating in a higher rate environment, both in later life and residential mortgages but customers are increasingly accepting of the new normal.
For advisers in the industry your role is perhaps more important than ever, to help clients understand their options and how they could help them meet their needs both now and in the future. In later life lending, especially with the introduction of Consumer Duty with a spotlight on fair value and avoiding foreseeable harm, decisions don’t just boil down to the rate your client can secure. The additional protections provide confidence that we are delivering value for customers in our target market. Plan features and product innovation mean that there are products available that are suitable for a wide range of homeowners, who can put themselves in greater control of their borrowing.
At more2life, we’re keen to support advisers as they seek to deliver the plans that meet their client’s needs, and we believe that widening the distribution of our market-leading Flexi Choice plan will help you do just that.
Aside from the fact that these plans offer the best rates in the market at the moment, with LTVs of up to 44% and loaded with more2life’s core 4 features, that are essential for good customer outcomes, this product is flexi by name and nature. Making it available to more advisers means that clients can benefit from the all-important modern lending features and a plan structure that is designed to adapt to a client’s changing needs.
The flexible pricing engine operated by the funder delivers a bespoke rate that reflects the risk of the client’s borrowing needs. And unlike standard lifetime mortgage products that operate static product options with fixed LTV ‘shelves’, the pricing of Flexi Choice can flex across a wide spectrum of LTV options – from as low as 5% up to a current maximum of 44% – to deliver the best rate for the client.
This flexible pricing structure also means that the plan can adapt to future borrowing needs, helping advisers have a rich discussion with customers about offsetting foreseeable harm. The plan evolves with the client’s risk profile so if they believe their circumstances may change in the future then so will the plan.
This means for example that a customer with modest borrowing needs can secure rates in the mid-range. As they get older and potentially have more equity in their home in the future, their risk profile improves and should they need to access further funds, they’re able to use this new profile to get the best terms available that the funder can offer and can exactly match their needs.
As a lender, our role is to support advisers in delivering the best possible outcomes for their clients. more2life is committed to providing the products, support and tools to help you do just that.
Here’s how to find out more about Flexi Choice:
- Watch the Flexi Choice webinar we did alongside Air
- Take a look at our Flexi Choice Lending Criteria webinar
- Visit our website
- Or speak to a member of our friendly adviser support team on 03454 500 151.
