The new alliance will be focused on introducing Paradigm’s membership to Partnership’s new Enhanced Lifetime Mortgage product.
As a consequence of Partnership’s underwriting and actuarial expertise, Partnership is able to offer Paradigm members and their clients access to a free to enter equity release product which offers higher than average LTVs for smokers and those with certain medical or lifestyle conditions.
The key benefits of the Enhanced Lifetime Mortgage product are:
- Free to enter – no set-up fees.
- Enhanced LTVs (increased cash advances) – those with medical or lifestyle conditions can release more equity from their home.
- £250 cashback – payable to the client on completion of the loan which could be used to offset the client’s legal fees.
- Inheritance protection option – allows clients to protect part of their property’s value to leave to their heirs.
As part of this new strategic alliance, Paradigm has also secured highly competitive terms for those members advising on, and recommending, the Partnership Enhanced Lifetime Mortgage to clients.
Partnership is the longest established insurer in the UK specialising in the design and manufacture of financial products for people whose health and lifestyle means that their life expectancy is likely to be reduced.
Bob Hunt, Chief Executive of Paradigm Mortgage Services, commented:
“There has perhaps never been a more apt time to talk about the needs of individuals as they reach and enter retirement, especially in light of the Dilnot report and its recommendations for the funding of social care.
"This can be a highly emotive topic however it is imperative that advisers are at the forefront in outlining to clients all the options available.
"This is why it is so important that Paradigm continues its strategic alliances with insurers like Partnership who understand that equity release is likely to play an increasingly important part in how people fund their retirement.
"This Enhanced Lifestyle Mortgage product is particularly relevant for those individuals who may not be in the best of health; it will allow them to access enhanced levels of equity from their homes which they could use if necessary to fund a significant care need.
“It is important that the equity release sector continues to grow and develop its product offering and we believe Partnership is at the forefront of such innovation.
"We know that many of our members are active in this sector and, as a consequence, we have been developing the Paradigm Equity Release proposition with all our preferred providers.
"Members can expect further announcements around the equity release space in the near future and, in the meantime, we would urge all advisers to look at the Partnership offering and to ensure it is part of their overall service offering to potential clients.”
Ged Hosty, Managing Director of Equity Release at Partnership, said:
“We are delighted to be working in partnership with Paradigm. Equity release provides a much needed source of funds for people in retirement who find themselves without adequate pension provision but have substantial equity in their properties.
"Partnership’s Enhanced Lifetime Mortgage will provide exceptional terms for homeowners with qualifying health conditions or circumstances – smokers, for example – and a simplified underwriting process means that a short list of medical questions can be completed online in minutes to confirm eligibility.
“We believe that equity release will provide a much needed source of income for people who need to meet their care costs. In particular, Partnership’s Enhanced Lifetime Mortgage recognises that health problems are so widespread among elderly people that possibly as many as 40% of over-60s can qualify.”
