Equity release lender more 2 life has introduced a new product range aiming to provide customers with more choice and more flexible options.
The Tailored Choice Plan provides customers with personalised plans and rates, customised to their individual situation and needs.
Clients can apply for enhanced loan-to-values (LTVs) on health grounds potentially worth up to 50 per cent of their house value. If they do not qualify for an enhancement they can still get a higher LTV deal and a lower rate of interest.
For those opting to drawdown cash over time rather than taking a maximum cash sum, the new plan offers high levels of reserve, offering more flexibility and choice over how and when customers access their loan.
Tailored Choice also offers a Guaranteed Inheritance Feature as standard for all drawdown customers that ensures a share of the property value can be passed on to beneficiaries when clients die or go into long-term care.
Requirements for the new plan include:
*The minimum age is 55
*Property values should range between £60,000 and £750,000
*The minimum loan is £15,000
*The minimum additional drawdown amounts are £5,000
Customers can release either a tax-free cash lump sum from the property or a smaller up-front sum and then take cash in stages as and when it is needed.
“People need more flexible options for retirement income and the option of accessing property wealth as the cornerstone of retirement planning will continue to grow.
“However every client is different and they need solutions that can be tailored to meet their individual needs, both now and in the future. This plan allows inheritance planning to be factored in so the property can be utilised to care for loved ones in future,” Dave Harris, managing director at more 2 life, said.
more 2 life, one of the first to offer enhanced lifetime mortgages, believes its new plan will have a considerable impact on the use of enhanced plans.
According to more 2 life, the share of enhanced lifetime mortgages on the equity release market stands at around 13 per cent. Equity release has increased tremendously over the past year, hitting an all-time high of £1.38 billion lent on more than 21,000 plans in 2014.
