More2Life is an award winning equity release lender, with years of experience. The company offers a variety of plans including their drawdown lifetime mortgage protected plan. They adhere to all Financial Conduct Authority regulations and the Code of Conduct created by the Equity Release Council. The More2Life Premier Choice Plan Series 1’s goal is to offer a drawdown lifetime mortgage which is backed by Partnership Assurance.
Features and Benefits
The More2Life Protected Plan is a drawdown lifetime mortgage, or at least it can be. It is available to homeowners with a minimum age of 70. There is no maximum age. Property value minimum is £60,000, with a maximum value of £1 million.
This lifetime mortgage is designed for any homeowner including those with an illness. Customers do not have to fill out the health and lifestyle questionnaire, although they can. It is based more on providing inheritance protection versus a maximum loan amount.
No repayments are required for the plan. The initial lump sum, any subsequent withdrawals, and interest accrued on all amounts is paid at the time of death or when the property is sold by the homeowner.
A cash facility can be added, but is not required as part of the protected plan. In the event of early repayment there are charges. These charges are based on the amount of time the loan was in effect. If early repayment occurs, regulation allows the lender to recoup any losses they may sustain from the early repayment.
In keeping with other regulations, there is a no negative equity clause. This clause protects against assets being added to the sale to cover any losses the company sustains. In other words, the home sale value must cover the entire loan and interest amount. If it does not the lender cannot take any other asset.
Options to Add to the Plans
The protected plan comes with inheritance protection. A portion of the home value can be withheld from the loan to value calculation. This percentage is kept for heirs of the homeowner. It is provided to the beneficiaries at the time of the home sale. The sale value is divided into the protected amount and the amount homeowner needs to repay in interest and principle balance. Any leftover value is paid to the heirs.
There is a maximum drawdown facility available after 6 months.