The provider says their focus on criteria such as on high blood pressure, weight, smoking, diabetes and early retirement has enabled them to offer higher loan-to-value (LTV) deals.
A 65 year old with serious health or lifestyle issues can now access a maximum LTV of 45.1% compared with 34% previously and for consumers aged 70 and over, the highest LTV available is 50%, an increase from 39%.
Jon King, managing director of More 2 Life, said: “Equity release needs to adapt to changes in lifestyles and increased longevity by providing more flexible and tailored solutions.”
Since June 2010 sales of enhanced equity have soared from zero to around 13% of the equity release market. More 2 Life believes around one in four equity release customers could benefit from enhanced equity release.
King added: “Customers need access to higher LTVs than are currently available and we have designed our products to meet that demand and to address the issues customers and brokers face.
“Enhanced equity release has already demonstrated its value since launch and the improvements will help drive further growth.”
David Wright, managing director of Sixty Plus said: “It’s great that More 2 Life are improving their terms. All innovation in the equity release market is welcome.
“There is a strong appetite for business with most lenders offering free valuations and some also offering client cashbacks. Several have lowered their interest rates recently too demonstrating that it’s a competitive market.
“Just as with impaired annuities, many clients can obtain higher amount from equity release. However, it’s important to remember that this simply means a higher maximum release – the medically enhanced plans tend to have higher interest rates by 1% or more so, unless the client needs close to the maximum release, standard plans will continue to offer better value.”
