Mortgage News
More 2 Life launches equity release plan for healthy customers
More 2 Life has launched an equity release plan with a focus on medical underwriting, enabling the lender to extend the loan-to-values (LTV) for healthy borrowers, as well as offering lower rates.
The plan, Premier Choice, will offer a monthly interest rate of 5.85%, compared to 6.3% on its Tailored Choice Plan from which More 2 Life has adapted the underwriting approach.
By altering the underwriting method used for its Tailored Choice Plan – aimed at customers with medical and lifestyle conditions – More 2 Life was able to launch Premier Choice to offer a lower rate for customers that have a healthy body mass index and do not qualify for Tailored Choice.
Borrowers can access LTVs of up to 55.5% and customers who do not take the maximum cash available can guarantee an inheritance once their property is sold. The Guaranteed Inheritance Feature enables borrowers to protect a share of their property.
The product offers a minimum loan size of £15,000 with minimum additional drawdown amounts of £5,000. The minimum age is 60 for single lives and 65 for joint lives with the lowest property value allowed at £60,000 up to a maximum of £750,000.
Dave Harris, managing director at more 2 life, said: “Equity release needs to adapt to changes in lifestyles and increased longevity by providing more flexible and tailored solutions.
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“Feedback from advisers and customers is that there is strong demand for higher LTVs for healthy customers considering bigger loans for a specific purpose, and our focus on individual underwriting has enabled us to launch Premier Choice.”