Equity release lender More 2 Life has estimated that around 25% of equity release customers would qualify for enhanced terms on equity release worth an additional £16,000 on a £200,000 property.
The enhanced terms are based on its health questionnaire which covers issues such as smoking, diabetes, height-to-weight ratio, high blood pressure and early retirement through ill-health in addition to medical conditions including cancer and heart conditions.
LTVs at 60-years-old are 28% rising to 38% at 70 and 48% at 80 against typical rates of 20%, 30% and 40% across the market. On a £200,000 property a 60-year-old customer would be able to release £56,000 compared with £40,000 on other plans.
More 2 Life is urging advisers to review equity release customers’ terms in order to ensure they are receiving the best possible deals.
Its managing director Jon King said: “Lifestyle and medical pricing will dramatically change the equity release market and it is vital that customers are offered the best possible deal.
