More2Life re-entered the equity release industry only recently and is administered by Key Retirement Group. When banks started struggling during the subprime mortgage crisis, More2Life took a break from the market. Now that the then Financial Services Authority (now Financial Conduct Authority), has new regulations in place More2Life has come back with various products including the More2Life Protected Plan. It upholds the Code of Conduct by the Equity Release Council and fits into the FCA regulations.
The company offers a few plans including the drawdown lifetime mortgage option with cash reserve account called the Protected Plan.
Features and Benefits of More2Life Protected Plans
Many lenders offer loans to individuals under 70 years of age, however More2Life has a minimum age requirement of 70 for the Protected Plan. More2Life has a funding agreement with Partnership Assurance, which is an annuity specialist business, ensuring the loan is properly backed. It enables the interest rate to be competitive and for qualifying clients lower than typical lifetime mortgage plans.
No underwriting is necessary with the plan. It begins with an initial tax free sum of £15,000 minimum. Homeowners’ property must be located in mainland Scotland, Wales or England. A minimum home value is set at £60,000.
This mortgage has a no-negative equity clause as per FCA and ERC regulations, making certain the loan amount plus compounding interest cannot exceed the value of the home.
Additional Notes for the Drawdown Mortgage
Inheritance protection or More2Life’s “protected equity guarantee” allows clients to set aside a percentage of property. It is a fixed percentage that cannot be used to repay the amount owed at the end of the loan term.
The clause is required to be in the document before completion of the process. Setting a protection guarantee lowers the amount of cash available for the reserve account. All minimums must be met first before the guarantee is set up to ensure no-negative equity results due to accruing interest.
Standard repayment applies: going to live in a long term care facility or death will require full repayment of all withdrawals, initial capital sum, and interest. At the time of repayment any inheritance is provided to the heirs. Repayment is through the sale of the home unless beneficiaries wish to make other arrangements.
Incentives for More2Life Equity Release
A free valuation and maximum drawdown feature are provided with this account. The drawdown facility is available 6 months after the initial completion.