Partnership launches UKs first impaired health scheme
Partnership Home Loans has launched its medically underwritten impaired life equity release plan, which it claims is the first in the market. By taking into account the clients medical conditions and the impact these will have on the clients’ life expectancy, Partnership Home Loans is able to provide a reversion plan that could release more equity for the client.
Its life equity release reversion plan has a minimum age of 55. It has no maximum on properties valued, and allows a minimum equity release of £25,000. Clients are able to choose from lump sum, income or lump sum and income only payment options, with the deal available to joint and single lives.
Steve Groves, chief financial officer at Partnership Home Loans, claimed the product would ‘shake up’ the equity release market, and drew particular attention to its minimum age requirements and the medical underwriting. He said: “At the moment, people who have been ill and as a result have had to retire but are under 60 cannot take out equity release, and we realised the need to offer a service starting from the age of 55. By taking clients health into account we are able to offer a significant price difference.
“Advisers who are doing equity release business but are not taking into account the clients health are walking a regulatory tightrope,” he added.
Frank McCann, head of business development at In Retirement Services, said: “This product brings an extra dimension to equity release. Up until now, anyone who enquired about equity release, but was in bad health was told it was probably not for them.”
Partnership Home Loans has confirmed it is piloting the scheme, with a full launch planned for mid-May.