The lender has a simplified underwriting process to ensure advisers can receive quick decisions on whether clients qualify for enhanced loan-to-values on health grounds potentially worth up to 50% of their house value. Customers who do not qualify for an enhancement still benefit from generous LTVs and a lower rate of interest.
For those opting to drawdown cash over time rather than taking a maximum cash sum, the Plan offers some of the highest levels of reserve on the market, giving them more flexibility and choice over how and when they access their loan.
Tailored Choice also offers a Guaranteed Inheritance Feature as standard for all drawdown customers that ensures a share of the property value can be passed on to beneficiaries when clients die or go into long-term care.
more 2 life – which pioneered enhanced lifetime mortgages – believes Tailored Choice will substantially increase the use of enhanced plans which currently account for around 13% of the booming equity release market which hit an all-time high of £1.38 billion lent on more than 21,000 plans in 2014.
Dave Harris, managing director at more 2 life, said: “People need more flexible options for retirement income and the option of accessing property wealth as the cornerstone of retirement planning will continue to grow.
“However every client is different and they need solutions that can be tailored to meet their individual needs, both now and in the future. This plan allows inheritance planning to be factored in so the property can be utilised to care for loved ones in future.”
Customers can release either a tax-free cash lump sum from the property or a smaller up-front sum and then take cash in stages as and when it is needed.
Tailored Choice’s simplified underwriting process involves just 13 health and lifestyle questions which advisers can take clients through to ensure everyone who can qualify for enhanced LTVs does.
more 2 life was the first to offer higher LTVs to customers with medical conditions or lifestyles affecting life expectancy. The online underwriting assesses factors such as weight, smoking, general health and early retirement on ill-health grounds.
The minimum age is 55 and the minimum property value is £60,000 with a maximum of £750,000. The minimum loan is £15,000 and minimum additional drawdown amounts are £5,000, and more 2 life will consider loans against a wider range of properties than considered by some other lenders.