The flexible pricing is also set to simplify the products within the Classic range, with the existing 12 loan-to-value (LTVs) making way for four product variants under the Classic Flex Pricing umbrella.
These products will include a Lump sum and Drawdown version and two fee options as in the past, meaning customers can choose a fee-free version or one that come with a £500 arrangement fee.
For brokers, the new pricing methodology will be fully integrated with the major equity release sourcing platforms including Advise Wise, IRESS, and AiR.
The new approach is also expected to create added transparency for customers in relation to the key facts illustration (KFI) validity period of 21 days. This will also give brokers a date for the diary to alert customers when the quote is nearing expiry.
Additionally, the new flexible pricing method treats customers who are within 50 days of their next birthday as if they have already reached the milestone, potentially allowing them to borrow at a lower interest rate.
Speaking of the latest development, Brendan Gilligan, head of product at Pure, says: “In a world where people are likely to be more cautious about making major financial decisions, we want to offer them a retirement solution that they know will be tailored to their bespoke needs and circumstances.”
“Moving to a flexible pricing solution allows for better and more competitive rates for customers, and we’re delighted to be able to do so in a way that will be frictionless for brokers to utilise.”
Aldermore revamps products across resi mortgage range
Aldermore bank has reduced rates across its residential owner-occupied mortgage range and reintroduced a range of remortgage products providing greater choice for borrowers.
According to the bank, these products are designed to support borrowers, whether they’re looking to get on the property ladder, have complex needs, less than perfect credit, or want to secure a better deal.
The following fee-free remortgage only products include no product fee, and free standard legal and free standard valuation fees:
2 year fixed 3.48% to 75% LTV
5 year fixed 3.78% to 75% LTV
2 year fixed 3.68% to 80% LTV
5 year fixed 3.98% to 80% LTV
The reduction in rates for the following purchase and remortgage products will include a £999 product fee:
2 year fixed up to 75% LTV – 3.48% reduced to 3.18%
5 year fixed up to 75% LTV – 3.68% reduced to 3.38%
2 year fixed up to 80% LTV – 3.78% reduced to 3.48%
5 year fixed up to 80% LTV – 3.98% reduced to 3.68%
Jon Cooper, head of mortgage distribution at Aldermore, comments: “The pandemic has accelerated the increasingly broad set of financial circumstances that borrowers have, so we want to be inclusive and responsive to this long-term trend.”
“It is important to give opportunity to the widening number of people that may have complex income streams or credit issues in the past so that they can find a product that suits their individual circumstances.”
He concludes: “With the reintroduction of these remortgage products, we’re delighted to be providing a greater amount of choice to homeowners looking to secure a better deal or reduce monthly payments to release funds to be put towards other large expenses on the horizon such as home renovations.”
more2life broadens LTV range for Capital Choice product suite
Equity release lender more2life has announced a range of updates to its Capital Choice product suite as it aims to provide a more competitive and broader range of lending solutions to later-life borrowers.
The product range now includes two new plans – named ‘Midi’ and ‘Max’ – and a refreshed ‘Plus’ plan, offering a greater range of LTV options and rates.
As part of the update, more2life’s new ‘Max’ plan offers the highest LTV options within the Capital Choice range for clients aged under 85.
Additional benefits of the new ‘Midi’ and ‘Max’ plans include:
Loans available from £10,000 - £1.5m on either a lump sum or drawdown option
Fixed early repayment charges (ERCs) on a sliding scale of 5% in year one of the loan to 0% from year 11 onwards
Partial repayment options from day one
ERC exemption within three years of the death/admission into long-term care of first borrower in joint cases
Inheritance protection of up to 50% on lump sum products
Downsizing protection after an initial period of five years
The move follows the launch of more2life’s Prime Max Lump Sum plan which it says offers the highest LTV in the equity release market and reaffirms the lender’s commitment to providing a range of innovative and flexible lending solutions to suit later life borrowers.
Stuart Wilson, corporate marketing director at more2life, comments: “We are proud of the range of options that our Capital Choice plans offer, and the raft of updates provides additional flexibility and choice for the older homeowners – and the advisers who support them.”
“A broader range of plans and LTVs marks an exciting step in more2life’s development, as well as the wider later life lending industry’s growth. We hope that advisers will welcome the news as an opportunity for them to further support older clients and provide this cohort with practical solutions that suit their modern-day needs.”
Newcastle to launch 95% new-build deals under Deposit Unlock
Newcastle Building Society will be the first lender to offer 95% LTV mortgages to buyers of new-build homes under a new mortgage indemnity scheme developed with the Home Builders Federation.
Initially available in the Northeast of England, the Deposit Unlock scheme is designed to help more low-deposit borrowers secure a new-build home up to a value of £330,000 with a deposit of just 5%.
The scheme will provide low-deposit buyers with an alternative to both the recently launched government mortgage guarantee scheme and the Help to Buy scheme, which will end in 2023.
The Home Builders Federation and its members teamed up with Newcastle Building Society and insurance brokers Gallagher Re to create the Deposit Unlock mortgage indemnity scheme.
Stuart Miller, customer director at Newcastle Building Society, says: “Key to our purpose as a regional building society is to help more people get on and up the property ladder – especially those without access to the bank of mum and dad.”
“Being the first lender to adopt the scheme means we’ll be providing new-build buyers with more options to access low-deposit mortgage products, and helping to address the pressing need for more homes to be built.”
More information about Newcastle Building Society’s Deposit Unlock product rates will be announced when the scheme launches in the next few weeks.
The Nottingham reduces rates in limited company BTL range
The Nottingham has introduced a new Limited Company buy-to-let (BTL) range, including reduced rates and new offerings.
Its two-year 65% LTV ERC-free discount product (with £299 upfront fees, £499 total) has been reduced to 3.10% (3.44% off The Nottingham’s Variable Mortgage Rate) from 4.00%.
The building society’s existing group of two and five-year fixed Limited Company BTL mortgages have all seen rate reductions of between 10 and 25 bps, with its 75% LTV five-year fixed (£999 fees) product now 3.40% (was 3.65%).
It has also added further choice for landlords in the form of a duo of new 75% LTV two-year fixed products priced at 3.20% (£999 fees) and 3.60% (no fees) respectively.
The Nottingham’s head of intermediary sales, Nikki Warren-Dean, says: “We have an ongoing dedication to ensuring we offer good options and competitive products that appeal to landlords with up to 15 properties.”
“This new product range is aimed at supporting them in achieving their portfolio growth and the latest step in our commitment to growing and evolving our range to ensure we have great choice for brokers and their clients across all of our products.”
LendInvest launches new pay rate products
Property finance platform LendInvest has announced a range of key changes to its BTL suite, including the launch of new pay rate products and a repricing of its standard BTL range and Small HMOs.
It has also introduced two new 65% and 70% LTV pay rate products, with rates starting at 3.34%.
The lender has repriced its standard BTL products, with its five-year 75% LTV product now available at 3.39% and 75% pay rate product at 3.44%. The two-year fixed rate products start from 2.99%.
A range of reductions across the Small HMO range has also been made, including the drop of its five-year 75% LTV product to 3.64%.
Borrowers are eligible for a reduced £150 valuation fee on standard properties.
Andy Virgo, sales director at LendInvest, comments: “We are very fortunate to have the ability to remain fluid with our proposition and continue to adapt our offering to serve the evolving needs of our landlords. These changes are aimed at bolstering our most popular products, while simplifying our range to make sense for our customers.”