More 2 Life is to launch a lifetime mortgage distributed exclusively through financial advisers and specialist brokers which will offer enhanced terms for customers with medical or lifestyle impairments.
The provider withdrew from the lifetime mortgage market in September 2008 and pulled out of the equity release market entirely in May 2009 when it stopped offering home reversions.
The deal between Partnership and More 2 Life will cover up to £250m of mortgages to be originated by More 2 Life, with the lifetim product set to launch from June 1.
The initial rate is 6.99% to 7.49% and is available at higher LTVs for customers with medical or lifestyle impairments. Clients can protect a level of equity in the property to safeguard some equity for their beneficiaries.
It is available to customers with medical conditions including heart conditions, raised blood pressure, smokers and cancer, possibly in remission.
The minimum initial cash release is £15,000 while the minimum further advance is £10,000. There is also a minimum property value of £70,000.
Both Partnership and More 2 Life are members of Safe Home Income Plans and say the new product complies with SHIP’s requirements.
Andrew Megson, managing director of retirement at Partnership, says: “We are delighted to be working with More 2 Life on this exciting product.
“The combination of Partnership’s expertise in impaired and enhanced products, together with More 2 Life’s expertise in the equity release market means that we have been able to develop a product that will improve terms for potential customers.
“We estimate that around 30% of people over 60 will qualify for the new product.”
Paul Wilson, managing director at More 2 Life, says: “Potential clients and their advisers investigating enhanced equity release products have historically faced a cumbersome and somewhat complex process.
“The proposition we are able to bring to the market with Partnership’s support will bring a streamlined enhanced lifetime mortgage option which could be to the equity release sector as crucial a development as has been achieved for the annuity sector.
“More 2 Life is still keen to secure further funding from other sources for other products it is keen to offer outside of the impaired market.”