So it is paramount for brokers to understand this and take it into account when advising on equity release.
A key way of addressing this is to complete an impaired life application, providing an opportunity for brokers to enhance benefits for clients who are not in perfect health.
Impaired life products take into account customers’ medical circumstances and life expectancy to make the most of the value of their home and the equity they can release from it, often maximising the LTV available.
These applications are offered free to brokers and IFAs by ourselves and other providers.
Following the withdrawal of high LTV products from the market, the use of impaired products could also allow qualifying clients the opportunity to release more equity, or critically, allow for remortgaging to a lower interest rate, if appropriate.
Ultimately, the advice process in equity release focuses on minimising the eventual debt and this is affected by both how long clients live as well as the interest rate. So it’s vital to get the right product for every client.