more 2 life says that individual underwriting of equity release plans is vital to secure the best possible LTVs for customers. It aims to deliver quick decisions on whether clients qualify higher LTVs on health grounds. Customers who do not qualify for an enhancement can still benefit from higher LTVs and a lower rate of interest.
Currently, around 90% of more 2 life's deals are underwritten, compared to an estimated 5% across the lifetime mortgage market.
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.
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.”
