Retirement solutions provider Partnership has launched an equity release targets at homeowners over 60 who have health issues.

The enhanced lifetime mortgage is available to those whose property is worth at least £70,000, with minimum cash release for the mortgage is £25,000

Partnership says the deal offers benefits to people suffering from long-term illnesses such as diabetes, cancer or high blood pressure. Smokers are also eligible.

It says its research shows that there is a significant equity release market for those with health and lifestyle issues, which could affect up to 40% of people who apply for products.

The provider says it will not change any valuation, application or completion fees.

The product a fixed annual equivalent interest rate, which is currently set at 7.65%. The overall cost for comparison is 7.7% APR (typical).

Partnership includes a ‘No Negative Equity Guarantee’ as standard with the enhanced lifetime mortgage, which safeguards against the property losing value.

It also says that inheritance protection can be assured, where the homeowner draws less than the maximum cash.

Ged Hosty, managing director of equity release at Partnership, “We already know that equity release provides a much needed source of income for people in retirement who find themselves without adequate pension provision but have substantial equity in their properties.