What is Flexi Interest Reward?

Flexi Interest Reward is a feature of our Flexi lifetime mortgage where your client is rewarded with an interest rate discount for making a period of monthly payments. 

It allows your customers to choose their own monthly payment and payment term.* In return, they’re rewarded with a personalised interest rate discount for life, providing all payments are made. 

Adviser Guide     

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*Subject to criteria

Flexi Interest Reward overview

Ages 55 - 82+364 days


Adviser guide

LTVs from 5% - 48%


Product guide

£125,000 - £2m


Product info
 

Lump sum only


Lending criteria
 

Who is Flexi Interest Reward for?

Your client could be suitable for Flexi Interest Reward if they’re willing and able to make monthly payments for a fixed period to secure a lower interest rate. It could also provide a good customer outcome for customers who want to reduce their monthly outgoings by paying off an existing mortgage, or if they want to extend their existing mortgage debt into retirement and choose how much and for how long they make mortgage payments. 

Find out more about who is and isn’t suitable for Flexi Interest Reward by downloading our Product Information Sheet.

Product Information Sheet

How much could my client save?

Interest rate discounts with Flexi Interest Reward are bespoke. As Flexi has live pricing and your clients choose how much they want to pay and for how long*, their interest rate discount is personalised. But essentially, the higher the monthly payment they commit to, typically, the bigger the discount.
 

Is there a limit to how much my client can pay?

Your client could opt to pay more than 100% of the plan’s monthly interest, and in addition to their agreed monthly payments, the customer can also make overpayments. If they want to avoid early repayment charges (ERCs), monthly payments and overpayments combined can only equal up to 10% of the initial loan amount each year during the ERC period.

Download product guide

*Subject to criteria

Is Flexi Interest Reward affordability tested? 

You're expected to conduct an affordability assessment before recommending Flexi Interest Reward to ensure it's affordable; however, we won't assess your client's credit score and their home won't be repossessed if they stop making payments. The consequences of not maintaining the monthly payment, such as the increase to the cost of borrowing, must also be understood. 

You can download our income and expenditure template to help when conducting an affordability assessment with your client, or use one of the many helpful online tools, such as Air’s Navigator Tool.

Download template

What happens if my client stops making payments?

Your client can temporarily reduce their monthly payments at any time to help manage budgeting. Alternatively, they can take a payment break during their payment term. In both instances, your client will keep their discounted interest rate providing the account goes no more than three months into arrears during the contractual payment term and any shortfall is repaid within three months.

If your client needs or wants to stop making payments, we can remove the Interest Reward feature from their Flexi lifetime mortgage. This won’t affect their security of tenure, and they won’t lose their full interest rate discount providing more than 25% of the payments have been made.

Sourcing

When sourcing, Flexi Interest Reward will only display if a suitable budget and payment term are provided.
Currently, Flexi Interest Reward is only available through the more2life’s fastpath portal and Air Sourcing, with plans to expand this in the near future.

For more information on how to source Flexi Interest Reward, download our fastpath and Air Sourcing guides below.

Air Sourcing guide

fastpath sourcing guide

Lending criteria tool

Flexi boasts a flexible product criteria. For more details and to see how it compares to our other plans, use our free lending criteria tool. It helps answer some of the most common product criteria questions and allows you to personalise your criteria search to see if your client's home is eligible.

Lending criteria tool


Core:4 features

Our Core:4 features provide peace of mind, flexibility and control, and can help give your clients a brighter financial future. They're automatically included in our Flexi Interest Reward lifetime mortgage, so you don’t have to worry about opting in.

Download guide

Download your Flexi collateral now

Flexi IR Adviser Guide

Download now

Lending criteria

Download now

Product guide

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Customer guide

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Tariff of charges

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Product information

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Flexi IR short guide

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Example case study

Download now

Launch video

Watch now

FAQs

Your client's discount is personalised to them and based on the following: 
  1. The oldest borrower’s age at application
  2. Their desired LTV
  3. Their monthly payment (min £50)
  4. Their chosen payment term
  5. Flexi’s live pricing engine
The discount is available for the life of the plan, providing your client meets all their payments. 

Download adviser guide

Not neccessarily. If your client has paid more than 25% of their payments, they will retain some of their interest rate discount. 
 
Payments made Loss of discount
Less than 25% 100%
25-49.99% 75%
50-74.99% 50%
75-99.99% 25%

Removal of discount is rounded down to two decimal places.

Your client can temporarily reduce their monthly payments at any time to help manage budgeting. Alternatively, they can take a payment break during their payment term. If any part of a payment is missed, the shortfall must be cleared within three months of the first missed payment to keep the discount. If the account is brought up to date within this period, the discount will remain, and the arrears period will reset. Any future missed payments will follow the same three-month grace period. You can learn more about missed payments in our Flexi Interest Reward Adviser Guide. 

Download now

No. Even if your client stops making payments during their payment term, this won't put their home at risk. Flexi Interest Reward is a lifetime mortgage that meets Equity Release Council standards. 

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