Just Group has introduced personalised interest rate and loan-to-value (LTV) options, with medical underwriting across its Just For You range of lifetime mortgages.
The service, available across the Just For You range, means intermediaries can tailor a lifetime mortgage to each individual client, offering the opportunity for them to secure more competitive interest rates and increased LTV.
Just Group’s medical underwriting ensures retirees maximise the income from their pension savings, with an estimated two-thirds receiving rates that were more competitive than non-medically underwritten offers.
Just has estimated that around six in 10 lifetime mortgage customers could achieve better outcomes from having their lifetime mortgage application medically underwritten.
Stephen Lowe, group communications director at Just Group, said: “This could mark the beginning of the end for standard Lifetime Mortgage interest rates.
“Rather than telling clients what the rate is and the limit of how much they can borrow, advisers will increasingly be able to discuss a client’s own unique rate and available borrowing based on their individual medical conditions and lifestyle factors.
“The Just For You Lifetime mortgage has been a big hit with advisers for giving a menu of options and features such as interest-servicing, tiered interest rates, drawdown options, payment holidays, cashback, access to additional borrowing and fixed early repayment charges.
“By incorporating the client’s medical conditions and lifestyle factors advisers are now equipped to create better outcomes for their clients by creating a bespoke solution of better interest rates and for those that need it higher borrowing capacity.
“Capturing the data is streamlined through Just Group’s fully automated underwriting systems which offer efficient data capture and fast turnaround times, backed by its outstanding levels of service.
“Advisers can access the innovative new services through the main market sourcing platforms.
“We were the first to capture the power of data to give customers better deals when we started medically underwriting Guaranteed Income for Life – and now we can extend those benefits to lifetime mortgage customers. By answering a few simple questions advisers can ensure their clients get our very best deal.
“Forward-thinking advisers already understand the importance of treating each client as a unique individual and using their skill to understand the client’s own circumstances and aspirations.
“The Lifetime Mortgage market is one of the most exciting growth areas of financial services for advisers as more retirees look for new ways to use the value in their home to meet their retirement aspirations, make gifts to the next generation and put inheritance plans in place.
“Medical underwriting delivers personalisation to ensure customers achieve better value and improved outcomes. Advisers led the charge to give clients better value in the guaranteed income for life market and we know they will positively embrace this change and demonstrate the same kind of leadership.”