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.
“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.”