More 2 Life has recently introduced a brand new product into the equity release market. The more2life Interest Choice Plan is a lifetime mortgage plan that offers you the ability to receive a lump sum initially, but still reserve the ability to receive future funds if you find that you need them and qualify for them. You also have the ability to pay the monthly interest accruing on the loan, whether in full or in part, which can help reduce what you actually owe when you finally sell your home.
To be deemed eligible for the Interest Choice plan with More 2 Life, you must be at least 60 years old. The maximum age is 99. You must also be a resident of the UK for at least the last 36 months and have UK or EU citizenship or permanent residency. The property in question must have a minimum value of £70,000 but cannot exceed £1,000,000. If the property in question is leasehold, it must have at least 75 years left on the lease in order to qualify. Applications will currently only be accepted in England & Wales.
Your income will also be taken into account when applying for this mortgage, to help determine the affordability. This means taking into account your income as well as your expenditures to ensure that you are able to repay the interest on the basis you choose. Under MMR rules affordability for an interest only lifetime mortgage must now be evidenced & stress tested.
There are a number of unique features to More 2 Life’s Interest Choice Plan. With this product, you can pay anywhere upto 100% of the monthly interest accruing on your loan. However, you must make payments that are a minimum of £25. There is the ability to release additional funds in stages but this is only available on a roll-up basis. There is a fixed interest on both the roll-up parts and the interest servicing. Under the Interest Choice Plan, you do not have to choose a term over which you will be pay for interest. It is also possible to switch to a roll-up basis at any time without have to pay any fees. This plan is also offered regardless of any particular lifestyle conditions or health conditions.
Similar to other equity release products, your loan will be paid back once your house is sold. This typically occurs when either you move into permanent long term care or pass away. The loan will be repaid, less any interest you have paid over the course of the plan.
So if you are looking for an interest only lifetime mortgage plan that runs for the rest of your life, with the ability to switch to a roll-up scheme at any point in the future, then the more2life Interest Choice Plan could be the answer.
