More2Life waited on the industry to show signs of recovery during the mortgage crisis. During this period the Financial Services Authority (now FCA) was taking a look at all mortgage products and in the equity release market for retirees. Waiting to see what regulations would change, More2Life only re-entered the market in recent years with new products. All their products adhere to the current Financial Conduct Authority, as well as maintain the Code of Conduct set out by the Equity Release Council.
Upon re-entry into the equity release industry, More2Life brought out at least four lifetime mortgages for clients including the Enhanced Lifetime Mortgage. It is a combination option as a higher maximum equity release is offered to clients due to their ill-health, while also being a drawdown mortgage. This combination of drawdown & enhancement of the maximum lump sum is unique in the lifetime mortgage industry currently.
Features and Benefits of More2Life Plans
More2Life offers this product to any homeowner of 55 or over. The property must have a worth of £60,000 with a maximum value set at £1 million. The starting lump sum minimum is £15,000. Adhering to UK regulations, a no negative equity guarantee keeps the interest and capital loan amount from becoming more than the property is worth.
More2Life requires clients to fill out a health and lifestyle questionnaire to determine if any health issues may fit their enhanced drawdown lifetime plan. A few health conditions that can increase the maximum release amount given to clients include cancer, heart failure, obesity, diabetes, high blood pressure, and the lifestyle choice of smoking.
No medical exam is necessary to determine medical qualifications, but More2life will invariable write to the applicant’s doctor to check their records to the application form. No repayments are required until death or a move to a residential care facility. The interest accrues onto the back of the loan and is repaid when the house is sold.
As a drawdown mortgage, clients will take an initial smaller lump sum than the maximum sum available. Clients, as they need funds, can withdraw from the cash facility set up from the outset. This product is also offered as a lump sum with no reserve facility, even though it is classed as a drawdown lifetime mortgage scheme.
The main benefit of the More2life drawdown plan is that in using the possibility of the poor health enhancement, this product can offer the largest drawdown facility across the whole of the equity release market. Therefore, those retirees looking for a maximum potential reserve facility that will last them way into retirement then the More2life enhanced drawdown lifetime mortgage could be the solution.
Additional Notes for this Drawdown Mortgage
The rules on future drawdown payments are that homeowners can withdraw at any time, subject to a minimum release of £5,000 each time. More2life do charge an administration fee each time a withdrawal is made & that amount is £99. Interest is fixed on the initial sum, but may vary on subsequent withdrawals. Interest only compounds on funds used and not money languishing in the reserve facility.
Inheritance protection called “protected equity guarantee” is available to homeowners through More2Life. It keeps a percentage of the home set aside as inheritance.
Incentives for More2Life Equity Release
A £2,000 cashback offer and free valuation are part of the incentives.