More2Life returned to the equity release industry after the Financial Conduct Authority made changes to the market. The subprime mortgage situation required new regulations to protect citizens from improper lending practises. More2Life is regulated by the FCA and upholds the Equity Release Council’s Code of Conduct. The More2Life Protected Plan is just one choice from the company. They also offer Interest Only Choice and Roll-up Lifetime Mortgage plans. The More2Life Protected plan is a drawdown mortgage, which offers a cash reserve facility to consumers.
Criteria of the MoreLife Protected Plan
More2Life’s Protected Plan is for homeowners aged 70 and over. It is designed with inheritance protection in mind. Partnership Assurance, an annuity specialist company, backs this plan. With this backing and products for retirees, More2Life is able to provide low interest rates for their lifetime mortgage products, including this More2Life Protected plan.
The plan does not require underwriting and provides a lump sum with a drawdown cash reserve facility in which the minimum initial lump sum must be £15,000.
The Protected Plan works for homes in England, mainland Scotland, and Wales, which have a minimum property value over £60,000.
In keeping with ERC and FCA rules, More2Life provides a no negative equity guarantee which states the loan cannot become more than the value of the home itself.
Unique Features of this Drawdown Mortgage
As a “protected equity guarantee” is included as an option, homeowners can state a specific property value percentage to be protected from the lifetime mortgage. This fixed percentage remains available for beneficiaries to guarantee an inheritance from their parent’s home.
The clause must be added prior to completing the lending paperwork. The percentage will reduce the amount of capital sum provided in the cash reserve facility, but the minimum still needs to be met. The capital sum required less any equity protection must remain in a state of no negative equity. More2Life can only offer protection if there is enough equity in the home to ensure no negative equity occurs with compounding interest over the life of the loan.
Repayment is made upon death or when the homeowner moves to a long-term care facility from their main residence. Selling the house is usually required to repay the capital sum plus accrued interest. At the time of the home sale any protected equity is given to family members of the owners or returned to the owners (if they are still living).
More2Life Equity Release Incentives
More2Life Protected Plan has free valuation plus a maximum drawdown facility available after 6 months into the lifetime mortgage.