More2Life spent a few years away from the equity release industry during the mortgage industry renovation. The crisis that sparked two recessions required new regulations, launched by the then Financial Services Authority (now FCA). More2Life adheres to the current Financial Conduct Authority and Equity Release Council to ensure their products are within regulation and proper code of conduct. With the re-launch of products the company rolled out new and competitive options such as the More2Life Enhanced lifetime mortgage.
More2Life provides two drawdown lifetime mortgages: More2life Protected Plan and Enhanced Lifetime Mortgage. The difference is in the maximum equity release lump sum amount provided to consumers. The enhanced plan offers a larger maximum tax-free lump sum based on the ill health of the youngest homeowner.
Summary of the More2Life Enhanced Equity Release Plan
As an enhanced plan the youngest homeowner must be at least 55 years of age and have a health condition, even if applying jointly. The health and lifestyle questionnaire is completed which assesses the individuals’ health based on numerous health issues such as high blood pressure, heart disease, cancer, obesity, diabetes or lifestyle choices like smoking.
Consumers’ will not need to take a medical examination, or make repayments during the life of the equity release loan. The lender will invariably write to the doctor to confirm the answers to the health & lifestyle questionnaire & will base the offer accordingly on this.
The More2Life enhanced lifetime plan is the first, & currently the only drawdown lifetime mortgage that offers an ill-health option where the actual reserve facility is enhanced also. In practice this means that given the severity of the applicant’s illness, More2Life will offer an overall enhanced facility based on the health of the individual. The homeowners can then decide how much of this overall facility they wish to withdraw initially, with the remainder being left in the reserve for future use, if required. No interest is charged on any funds left in the cash reserve fund until it is actual withdrawn.
Criteria of the More2Life Ill-health Lifetime Mortgage
The application process is straightforward with instant underwriting available on homes in England and Wales. The youngest starting age has been increased to age 55 with the property value minimum set at £60,000, but with a maximum valuation of £1 million. The loan to value percentage is based on a minimum withdrawal of £15,000. It contains a no negative equity clause to keep the interest from accruing on the capital sum to more than the home value to protect any beneficiaries.
Unique Features of this Drawdown Mortgage
As a drawdown mortgage homeowners can take the minimum initial tax-free cash amount and then remove a minimum of £5,000 on subsequent withdrawals as long as funds are available. This is the only drawdown equity release scheme with an enhanced reserve facility. This has been shown to be useful for retirees wanting a smaller initial lump sum, however as larger reserve as they could possibly get to last them through their retirement years. This will help many people plan for the future accordingly.
Repayment is made at the time of death, move to long-term care, or when the home is sold. Interest accrues only on the withdrawn portion of the facility and not the maximum available in the cash reserve.
More2Life Equity Release Incentives
Free valuations with upto £1,000 cashback* upon completion are just a couple of incentives offered by More2Life. Clients also have a max drawdown facility available under the More2Life Enhanced Lifetime Mortgage.
*different levels of cashback apply dependent upon age of the youngest applicant & subject to a minimum equity release of £40,000