More2Life equity release

Established in 2008, More2Life are a relatively young company in comparison some of the other equity release providers on the market. However, in that short period they have risen up to be the 3rd largest equity release company in the UK.

They have also received a handful of awards in that time too. The Best Later Lender award in 2018, as well as the Best Lifetime Mortgage Lender that same year. They pride themselves on the flexibility of their equity release plans, which have so far released over £1 billion in property wealth over the last 10 years alone.

Like the other major lenders on the market they are also part of the Equity Release Council which prevents them from ever charging more than the total value of the property through their ‘No Negative Equity’ guarantee. On top of this, they have a Guaranteed Inheritance Feature which comes included in every equity release package they provide.

What do they offer?

General requirements

• All offers require you be at least 55 years of age, some packages require 60+
• The property must have had its mortgage either paid off or will be paid off with the money being released.

Capital Choice

The Capital Choice plan is the standard offering from More2Life. It provides you with a lump sum of tax-free cash, released from the value of your property. This plan has a slightly more exclusive age range of 60 to 90 years. It also includes a drawdown option, subject to a minimum of a £2,000 withdrawal. Early repayments are available, up to 10% of the initial loan value per year.

With a minimum loan amount of £15,000 and a maximum of £500,000, it is a good middle ground loan that will suit the majority of homeowners. The minimum property valuation required to be eligible to take out this loan is £70,000 as well, which makes it a more accessible option for buyers with less valuable properties.

That said, once interest has been applied the minimum £15,000 chunk will make a significant dent in that £70,000 property’s value.

The capital Choice plan provides eligible homeowners with a lump sum tax-free payment. More2life now includes a drawdown option on this plan, which is subject to a minimum of £2,000 withdrawal.

Tailored Choice

As the name suggests, this plan is much more of a specific option. While the £70,000 minimum valuation is the same as the previous plan, the minimum and maximum loan amounts offer a greater range at £10,000 and £971,250.

The minimum age on this is also lower at 55, with no maximum age. Drawdown is also available but with a higher minimum of £5,000.

More2Life target this plan at those with a shorter life expectancy, to offer more flexibility with overcoming medical concerns. In order to access this plan you will be subject to a set of health and lifestyle questions. While there is no official medical examination to attend, you may be offered better interest rates if you have a lower life expectancy.

Flexi Choice

This is More2Life’s most direct offering in terms of receiving a one-time lump sum of cash.

With a minimum age of 55 and a maximum of 80, it has the most limited age range of the plans. The loan amounts are also the most constrained at a high £20,000 minimum and relatively low £420,000 maximum. In order to be eligible, the property itself has to be valued at £100,000.

This plan is more flexible however, as it includes the option to move the plan across to a new property should you move house, as long as the new property meets their criteria. Early repayment charges are applied on this plan however on all payments within the first fifteen years at a decreasing rate: 6% years 1-5, 5.3% years 6-10, and 1% years 11-15.

The loan can be paid back up to 10% annually but will incur fees at each payment.

Maximum Choice

Supposedly More2Life’s most flexible plan, the Maximum Choice loan allows for the broadest range of lump sum payments with the possibility of drawdowns in the future. For each drawdown you are, however, required to pay £500 in fees.

With a broad age range from 55 to 95 this plan allows you to borrow between £10,000 and £1 million with the same £70,000 minimum property value as the first two plans. This also allows up to 12% to be repaid annually, the highest of any of the plans.

The universal offerings

All of the above plans include a ‘No Negative Equity’ guarantee as well as the option to move any plan across to a new property if you were to move house. In order to do this, however, you must ensure that the new property adheres to the stipulations set forth in the initial agreement.

Also, if these plans are entered into jointly, then upon the death of your partner you are able to pay off the whole loan with no early repayment fees. On top of that there is the inheritance guarantee feature which allows a certain chunk of the property’s value to be carved off for your loved ones to inherit.

Optional perks also include up to 3% cashback on withdrawals over £35,000.

More2Life Equity Release Plans

More2Life Equity Release Calculator

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In order to find out how much money you may be able to borrow through More2Life, visit the equity release calculator on their website. It asks for your age and the value of your property and from those figures will give you an indication of how much cash you could unlock.

Please remember, the amount seen on the calculator is not indicative of the exact amount you are entitled but instead just an estimate.

Are these good deals?

As with all equity release plans, it is strongly advised that you seek professional tailored advise for your own personal financial situation before deciding on any deals. What the right plan is for you is highly dependant on a number of factors.

While equity release plans are a great way of releasing some of the cash locked up in your property, they incur a lot of interest which is taken out of the property’s value upon your death. While this suits some people, those with family’s depending on them may wish to reconsider.