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The later life lender

04.20

Changes to Maximum Choice

With immediate effect, semi-automated valuations (aka remote/desktop) will be acceptable on all Maximum Choice plans, and the following changes have been made;

Rate Change 
From 2nd April 2020:
 
MAXIMUM CHOICE RATES
  Max Choice Lite
Lump Sum
Max Choice Lite
Drawdown
Max Choice
Lump Sum
Max Choice
Drawdown
Max Choice Plus
Lump Sum
Max Choice Plus
Drawdown
MER 4.00% 4.04% 4.77% 4.82% 5.36% 5.40%
AER 4.07% 4.12% 4.88% 4.93% 5.49% 5.54%
APR 4.14% 4.18% 4.94% 4.99% 5.56% 5.60%


Product change
The valuation paid version of Maximum Choice has been removed.
Inheritance protection will be removed from the product but will be a later development introduced after 2 April. 

Lending criteria changes
• Flats no longer accepted
• Thatched rooves not permitted 
• No flat rooves over habitable parts of the property permitted 

Valuation
A semi-automated valuation will allow cases to move to offer and then completion but the money released will be subject to a retention.

Semi-automated valuations are not available on the following properties so will not be able to progress;
• New build properties
• Properties in Northern Ireland 
• Listed buildings
• Properties built before 1850
• Properties within 0.5 miles of the planned HS2 route
• Properties over £750,000 outside of the M25
• Properties over £1 million within the M25

A full physical valuation is required on all properties when practical.


Retention
There will be a 10% retention on the maximum loan amount a customer is entitled to.  

Lump Sum
On lump sum cases, the 10% retention is in relation to the maximum the customer can borrow. If a customer applies for a loan that is less than 90% of the maximum loan available, then they will receive all of the money immediately. If they ask for more than 90% of the maximum loan available, then they would only get 90% on completion and the remainder upon full physical valuation.
Example – maximum loan available £100,000
1) Customer asks for £100,000 – they receive £90,000 immediately and £10,000 on full physical valuation
2) Customer asks for £95,000 – they receive £90,000 immediately and £5,000 on full physical valuation
3) Customer asks for £90,000 – they receive £90,000 immediately, but a full physical valuation is still required, and there will be  no money for repairs available.

Drawdown
If the initial advance is less than the 90% of the maximum loan available, the customer will receive all of their initial loan, and their drawdown facility will be reduced by 10% of the maximum loan available. If the initial advance is more than 90% of max loan available, then there will be a retention and all drawdown withheld.

Example – maximum loan available £100,000
1) Customer asks for an initial advance of £50,000 and a drawdown facility of £50,000  – they receive £50,000 immediately, £40,000 is available as a drawdown facility immediately, and a further £10,000 will be added to the drawdown facility on full physical valuation
2) Customer asks for an initial advance of £90,000 and a drawdown facility of £10,000 – they receive £90,000 immediately and the £10,000 drawdown facility becomes available on full physical valuation
3) Customer asks for an initial advance of £95,000 and a drawdown facility of £5,000 – they receive £90,000 immediately, a £5,000 lump sum is released and £5,000 added to the  drawdown facility after full physical valuation

Commission
Commission will be disclosed at the full amount to the customer, however commission will be paid in line with the amount initially released. If the loan is less than 90% of the maximum loan available, and so there is not a retention, then the adviser will receive full commission. If there is a retention, the same percentage of the loan that is retained will be applied as a retention to commission. The extra commission will be paid to the adviser upon (a) a full valuation supporting the LTV and (b) the customer agreeing to receive the additional funds.
The same rules will apply to club fees.

Pipeline Rules
1. App already in, paused at val stage, KFI pre-02/04:
Will proceed now with semi-automated val (SAV)
Will be subject to retention if over 90% LTV required
Will get old (pre-02/04) rates and accepted on the original criteria

2. App received by/before midnight on 8th April with KFI done pre-02/04:
Will proceed now with SAV
Will be subject to retention if over 90% LTV required
Will get old (pre-02/04) rates and accepted on the original criteria

3. App received from 00:00:01 9th April
Will proceed with SAV
Will be subject to retention if over 90% LTV required
Will be on the new rates and the new criteria will apply

4. App already valued and offered
Will proceed on old rates and accepted on the original criteria
No retentions

This website is intended for intermediaries only and has not been approved for customer use. more2life Limited. Registered in England No 5390268. Registered Office: Baines House, 4 Midgery Court, Fulwood, Preston PR2 9ZH. more2life is authorised and regulated by the Financial Conduct Authority.