more2life drives change in later life lending

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Flexible products and targeted strategies tackle the challenges of a changing mortgage market

"WHAT I need is a product that looks like this.” This straightforward feedback from advisers has become the foundation for more2life’s approach over the past 18 months, a period that demanded adaptability. Dave Harris, CEO of the UK’s prominent later life lender, explains: “We listened to what advisers and customers were telling us, and we responded. It was about understanding the real challenges they faced and delivering practical solutions in a volatile environment.” The past 18 months have presented no shortage of challenges. Persistently high inflation, the UK election, and slower-than-expected growth brought uncertainty to the financial markets. For the mortgage sector, interest rates hovered at levels two to three times higher than two years ago, making affordability a pressing issue. “2024 was anything but linear,” says Harris. “2025 has started in the same vein. Gilt rates and interest rate volatility have forced lenders to adjust while advisers and borrowers navigate a complex environment.

more2life is a specialist in lifetime mortgages, offering flexible plans designed for individuals aged 55 and over. more2life products help people make the most of retirement by unlocking the money tied up in their property and turning it into a tax-free cash lump sum, providing greater financial freedom. Committed to innovation, more2life focuses on developing tailored mortgage solutions that suit a range of individual needs and circumstances.

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The Features of Flexi

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“If the past few years have taught us anything, it’s that we need to build flexibility into every aspect of what we do – because the only certainty is that circumstances will change”

Dave Harris, more2life

“It was clear to us last year that traditional lending models couldn’t fully meet the needs of today’s customers. That’s why we took action.” more2life’s approach to product development starts with listening. Regular engagement with advisers and customers – whether through the new loan origination process, additional lending, or drawdowns – provided invaluable insight into the uncertainty clients faced. “Many customers weren’t sure what to do,” Harris explains. “There was widespread hope that interest rates would drop significantly, but 2024 didn’t follow a predictable or linear path. Even in 2025, it’s clear that banking on rate cuts is risky. For later life borrowers, this uncertainty was particularly pronounced. This environment has made traditional fixed-rate later life lending products, often accompanied by early repayment charges (ERCs) lasting 10 to 15 years, a less attractive solution. “Borrowers don’t want to lock themselves into products with lengthy ERCs, especially when future interest rates remain uncertain and [given] the anticipation of further reductions,” Harris notes.

The company launched several new products tailored to meet the unique and shifting needs of later life borrowers. One of the standout introductions in 2024 was Maxi Zero, a product that offers borrowers unprecedented flexibility. As the first lifetime mortgage in the market with no ERCs, Maxi Zero gives customers the freedom to adapt their plans without the financial penalties that often accompany later life products. It’s a bold move that addresses a key concern for borrowers in today’s uncertain market. Since then, other significant additions have been Flexi Interest Reward and Tailored Interest Reward, designed to reward customers with interest rate discounts for making monthly

payments. These features, subject to product-specific rules, allow customers to choose their own monthly payment and payment term – or to have the flexibility of no fixed payment term at all in the case of Tailored Interest Reward. In return, they’re rewarded with an interest rate discount. “Even modest contributions toward interest payments can make a substantial difference for borrowers,” Harris says. “Advisers have responded positively to this product type, as it allows them to offer practical solutions for clients with specific needs.” By incentivising borrowers to make regular payments, the Interest Reward feature offers reduced interest rates that can result in meaningful long-term savings. This approach empowers customers to take control of their financial situation while ensuring that advisers have a compelling tool to present to their clients. more2life has also ventured into hybrid solutions with its Flexi Payment Term Lifetime Mortgage, which combines elements of repayment and roll-up. Borrowers can pay off part of their loan while working, with the remaining balance rolling into retirement. This structure aligns with the growing trend of mortgage debt extending into retirement. “For borrowers nearing retirement, it’s about creating a realistic plan – pay down what you can now and carry forward the rest in a manageable way,” Harris explains.

Regulatory bodies like the FCA have reinforced the importance of affordability in later life lending. Their guidance emphasises assessing customers’ surplus income and encouraging repayments where possible. “These are lifetime products, but they’re not meant to be used without strategy,” Harris explains. “The compounding effect of letting a loan roll up unchecked

Harris sees a promising horizon: structural drivers such as an aging population, rising life expectancy, and the under-preparedness of retirees point to sustained demand. The untapped £5.7 billion in UK property wealth presents an opportunity to develop even more tailored solutions for borrowers. Hybrid products are poised to play a pivotal role. “We’re already seeing more people carrying mortgage debt into retirement,” Harris notes. “These customers need solutions that let them manage repayments while securing their financial future. Our new range of products will fill that gap.” more2life is also investing heavily in tools to empower

– especially at today’s higher rates – can be significant over time. That’s why we’re focused on products that encourage and reward payment.” For example, customers can make annual repayments of up to 10 to 12 percent before triggering ERCs, depending on the plan, providing a manageable way to reduce their debt. Interest Reward products further incentivise payments, offering discounted rates for customers who make consistent contributions. “Even a modest repayment strategy can have a meaningful impact,” Harris says. “It’s not just good for customers; it’s great advice from an affordability perspective.”

Positive aged couple consulting with insurance agent

Building flexibility into every product

Looking ahead: Opportunities in 2025

Published May 6, 2025

“Reports suggest that up to 20 to 25 percent of mortgage holders will carry debt into retirement. This is a fundamental change that will transform the quality of life for many people during retirement. It’s also a clear signal that the market needs to adapt”

Dave Harris, more2life

Flexi provides competitive rates in the lower LTV space. With live pricing, it stands out for its personalisation and flexibility – and it doesn’t restrict additional lending within a fixed product shelf.

Age range:

48%

Max LTV:

15 years

ERC period:

10% of initial loan amount each year

Repayment limit before ERC:

Yes

Does this plan meet Equity Release Council standards?

Partial repayments

Core 4 features of the Flexi and Flexi Interest Reward plans

Fixed early repayment charges

Early repayment charge exemption upon death or entry into long-term care

Downsizing protection

The landscape for later life lending is shifting. Where carrying mortgage debt into retirement was once rare, it is now increasingly common. Factors such as delayed homeownership, rising house prices, and extended mortgage terms mean that many borrowers face retirement with outstanding loans. “Reports suggest that up to 20 to 25 percent of mortgage holders will carry debt into retirement,” Harris notes. “This is a fundamental change that will transform the quality of life for many people during retirement. It’s also a clear signal that the market needs to adapt.”

Meeting the realities of a changing market

Hybrid products like the Flexi Payment Term Lifetime Mortgage address this reality. Borrowers nearing retirement can make partial payments during their working years, reducing their overall debt while planning for the portion they’ll carry forward. “For a customer in their 50s or early 60s, it’s about planning for what’s inevitable,” Harris says. “If you know you won’t clear your mortgage before retirement, why not create a strategy now that minimises the impact later?”

Regulatory guidance and affordability

advisers. In the first half of this year, the company plans to roll out advanced property valuation tools and lending criteria assessments designed to streamline the advisory process. “Too often, advisers face a mismatch between customer expectations and lending realities,” Harris explains. “By giving advisers better data up front – whether it’s accurate property valuations or insights into specific lending criteria – we can help them guide customers more effectively and avoid wasted time.” The challenges of the past 18 months have reinforced the importance of adaptability – not just in responding to external volatility but in meeting the changing needs of borrowers. “Whether it’s shorter ERC periods, Interest Reward products, or new tools for advisers, our focus is on creating options that reflect the realities of today’s market,” Harris says. For Harris, the lessons are clear: uncertainty is here to stay. But rather than seeing it as a challenge, he views it as a call to action. “If the past few years have taught us anything, it’s that we need to build flexibility into every aspect of what we do – because the only certainty is that circumstances will change.”

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