IFA Magazine has heard of a fantastic example of lenders and brokers working together to try and find solutions for hard pressed borrowers in today’s challenging market conditions.
Late last week, Lifetime Mortgage lender, More2Life, held a call with brokers during which they asked for feedback on what help brokers might need from the lender. Stuart Powell, Managing Director at Ocean Mortgages Ltd. was on the call. He suggested that a Lifetime Mortgage interest rate starting with a 5 would be nice. It seems that More2Life have responded to his request incredibly quickly, as they are now offering a rate of 5.94%.
As the lending market adjusts to the new normal of higher rates, it’s great to see an example of a lender engaging and listening to brokers in such a way. Stuart – along with other brokers – have been reacting to this news as follows:
Stuart Powell, Managing Director at Ocean Mortgages Ltd: “For a lender to invite brokers on a call to find out what they need is pretty rare. For them to then act on the requests by brokers is unheard of, especially when the request was for slightly lower interest rates. In a toughening market, lenders and brokers working together like this has to be in the best interests of all those looking to borrow. This is great news for consumers. Chapeau More2Life.”
Samuel Mather-Holgate, Independent Financial Advisor at Mather and Murray Financial: “More2life have been one of the market leaders on rates and their evolution of product features over the past 24 months has been really pleasing to see. With a sub-6% product they are anticipating gilt rates won’t rise that much further, and I think they’re right. I’m sure more lenders will follow suit.”
Riz Malik, Director at R3 Mortgages: “There was no reason for the lifetime market not to follow the conventional market and reduce rates. Given the rise in the lost labour force, living inheritences and increased cost of living, further rate reductions and competition are welcomed.”
Paul Neal Mortgage & Equity Release Specialist at Missing Element Mortgage Services: “It’s great to see lenders working with brokers. More2Life have been proactive throughout this whole period keeping up to date and not really making too many changes. Hopefully plenty more lender will follow the path more2life have laid. I just hope they can now keep up with the influx of business coming their way.”
Aaron Strutt, Product and Communications Director at Trinity Financial: “It is incredibly positive to see headline rates dipping below 6% although many lenders are still charging in excess of 7%. Much more needs to happen before this sector is offering appealing lifetime mortgage products to consumers again.”