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What is Tailored Interest Reward?

Tailored Interest Reward is an innovative lifetime mortgage designed to give your clients more control over their borrowing costs. Whether lump sum or drawdown, it allows customers to tailor their monthly payment to their circumstances; with interest rate discounts up to 0.60%, no fixed term and only a part-interest payment required to secure the maximum discount.

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Who is this product for?

Your client could be suitable for Tailored Interest Reward if they’re willing and able to make monthly payments 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. 

Learn more about Tailored Interest Reward with our guides

Adviser Guide

Read our adviser guide so you can learn about all the key details and features that come with Tailored and Tailored Interest Reward.

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Product Info Sheet

Our short guide that pulls together all the key details and features about Tailored and Tailored Interest Reward.

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Why choose Tailored Interest Reward?

It gives clients more control

Tailored Interest Reward lets clients decide how much interest to pay each month. By paying 25.01% or more, they benefit from a discounted rate for as long as payments continue.

It flexes when life changes

Clients can stop making payments at any time, with their plan switching to a fixed roll-up basis and the interest to the loan will increase as repayments cannot be restarted. They always keep security of tenure, no matter what.

It’s designed around needs

This product suits homeowners who want flexibility. Lowering costs when possible while keeping the reassurance of a lifetime mortgage that adapts with their circumstances.

Key features

Age Range

Available to clients aged

55-85

LTVs

from 

11%-48%

Loan Amount

£10,000+

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How much could my client save?

While making monthly interest payments, as a reward for paying more than 25% of the monthly interest, customers secure their plan’s maximum discount, which ranges from 0.3% up to 0.6%.

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Case study example

Paul (71) and Dawn (69) have lived in their £450,000 family home for over 30 years. With an outstanding £158,000 interest-only mortgage coming to an end, they wanted a way to repay the balance while remaining in the home they love. Looking for a flexible solution, they explored equity release and their adviser highlighted that Tailored Interest Reward could be the perfect fit.

By making payments for 10 years through Tailored Interest Reward, Paul and Dawn save more than £26,000 in interest compared to making the same payments voluntarily on Tailored Lifetime, and over £68,500 compared to not making any payments at all. As a result, they can pass on more than £215,000 in remaining property equity to their family when their plan ends - almost double what they would if they made no payments.

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How is Tailored Interest Reward different?

Unlike some other Interest Reward plans, Tailored Interest Reward comes with no fixed term. The customer is rewarded with an interest rate discount for as long as they make payments. For example, if your client wanted to pay more than 25% of their plan’s monthly interest for 10 years, they’d receive the maximum discount available for 10 years. When the payments stop, the interest rate reverts to the non-discounted rate.

You can see some of the other areas it differs below. 

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Sourcing

Tailored Interest Reward is available through more2life’s fastpath portal and Air Sourcing.

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

fastpath sourcing guide

Air Sourcing guide

Helpful Tailored Interest Reward downloads

Product guide

All the key details about Tailored Interest Reward in one place, so you can quickly understand how it works and who it’s for.


Download

Lending criteria

A clear breakdown of Tailored Interest Reward's criteria to help you check client suitability fast and avoid unnecessary delays.


Download

Tariff of charges

A full list of any costs that could apply, so you can provide accurate information and set expectations early.


Download

Product info sheet

A practical overview of who Tailored Interest Reward is suitable for (and who it isn’t), helping you place the right cases, first time.

Download

Lending criteria & other useful tools

Utilise our interactive tools to assess eligibility for your clients.

Lending criteria tool

Quickly check whether your client fits Tailored Interest Reward’s criteria, so you can qualify cases faster and with confidence.
 

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Max LTV calculator

Instantly calculate how much your client could release with Tailored Interest Reward’s LTVs, helping you find the right fit early on.

 

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Dedicated support tool

Enter your FCA number to instantly find your dedicated more2life support team, so you know exactly who to speak to for help with your next Tailored Interest Reward case.

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Talk to our Adviser Support Team

 
Our expert team is here to assist you with any questions or support you need.

Phone

Lines are open:
Monday to Friday from 9am to 5pm

03454 500 151

Email

Or, if you'd prefer to do things online,
you can email us at

[email protected]

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