More 2 life is expanding the offers in its recently-launched Tailored Choice Plan, aimed to provide more flexible options for customers.
The equity release lender has increased loan-to-values (LTV) in that product range by up to 5.5 per cent and now offers LTVs of 55.5 per cent for customers with medical conditions or lifestyle issues that affect their health.
More 2 life considers individual underwriting of equity release plans very important as in allows customers secure the best LTVs. The underwriting process is designed to deliver quick decisions on whether clients qualify higher LTVs on health grounds. Customers who do not qualify for an enhancement can still take advantage of the higher LTVs at lower interest rates.
Stuart Wilson, marketing director at more 2 life, said: “Medical underwriting should be a common feature of the equity release mortgage market, just as it is for lifetime annuities. However it’s frustrating to see there are still many customers missing out on higher LTVs as their lifestyles are not being taken into consideration when applying for equity release.
“Underwriting customers gives us more confidence that we can provide the most appropriate loan advances and all it takes is 13 simple health and lifestyle questions to see if a customer qualifies.”
Currently, around 90 per cent of more 2 life’s deals are underwritten but it is estimated that in the lifetime mortgage market as a whole just 5% of products are underwritten.
More 2 life was one of the first to offer higher LTVs to customers with medical conditions or lifestyles affecting life expectancy. The online underwriting assesses factors such as weight, smoking, general health and early retirement on ill-health grounds.
The minimum age is 55 and the minimum property value is £60,000 with a maximum of £750,000. The minimum loan is £15,000 and minimum additional drawdown amounts are £5,000, and more 2 life will consider loans against a wider range of properties than considered by some other lenders.
