Which providers offer medically enhanced equity release?

Meet the UK’s enhanced equity release providers

At least four UK equity release providers offer medically enhanced terms on account of some health conditions and lifestyle choices. Aviva, Just, More2Life and Crown Equity Release may all let you release more tax-free cash in certain circumstances.

The concept of enhanced equity release is still relatively new to the UK. But some established providers have embraced it and now offer this option on their lifetime mortgage or home reversion products.

In this article, we explore how medically enhanced equity release works and which providers offer it:

• What is equity release?
• What is enhanced equity release?
• What might qualify me for an enhanced plan?
• Which providers offer enhanced equity release?
• Get your personalised equity release quote. 

We hope this guide will help you understand enhanced equity release and who offers it. Our selected advisers are also available to discuss your circumstances and offer further information, advice and quotes from leading providers. 

Simply call us on 0808 178 3055 or request a call back for a time that suits you, and we’ll arrange an appointment. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could .

What is equity release?

Equity release is a way for homeowners in later life to unlock some tax-free cash from their property without having to sell or move home. Unlike most other forms of lending, there are no regular repayments, unless you choose to make them. 

There are two types of equity release. The one most often chosen by UK consumers is a lifetime mortgage, which is typically available at age 55 and above. With this type of plan, you still own your home and have the right to live there for life. 

Typically, the loan plus accumulated interest are repaid only when you pass away or move into long-term care. The sale of your property funds this repayment, with any money left over available to you or your estate.

The second option is known as a home reversion plan. Available from age 60, this involves selling all or a percentage of your home. You then have the right to stay in your home as a rent-free tenant. 

As with a lifetime mortgage, the money you owe with home reversion is paid back via the sale of your home when you pass away or move into long-term care. There is no interest to pay, but when you take out the plan you will receive cash considerably below market value of your home.

If you are younger than 55 you won’t be eligible for a lifetime mortgage or home reversion plan. But you may still be able to release equity through other means: How to release equity if you are under 55.

What is enhanced equity release?

A few equity release providers may give you a special deal in some circumstances related to your health or lifestyle. This is known as enhanced equity release.

Specifically, you may be able to release more tax-free cash or benefit from favourable terms such as a lower equity release interest rate than you’d get with a standard plan.

This is because for people with health problems or making certain lifestyle choices, the equity release scheme provider assumes their life expectancy will be shorter than for healthier people. They therefore anticipate getting their money back sooner and can offer more money or better terms.

All providers take your age (and therefore life expectancy) into account. But enhanced equity release providers go one step further and also consider health and lifestyle.

We should stress that nobody can accurately predict how long an individual will live. We hope you go on to live a long and happy life, even if you are eligible for a medically enhanced plan! 

What might qualify me for an enhanced plan?

Some examples of health conditions that may qualify you for an enhanced plan include high blood pressure, diabetes, heart attacks or angina, some types of cancer and some mental health disorders.

Even if it’s been some time since your diagnosis and the condition is no longer an issue for you, you might still qualify for enhanced rates. Likewise, taking medication for a condition that presents no symptoms could also lead to an enhanced plan.

Some lifestyle factors may also mean you are eligible. These include having a high or very low body mass index (BMI), or having a history of smoking or drinking alcohol. 

We have given just some examples of potentially qualifying factors above. We would also encourage you to contact us to talk to one of our selected advisers, who can take you through a short questionnaire to assess your individual eligibility.

Which providers offer enhanced equity release?

Four UK companies that offer enhanced equity release are Aviva, Just, More2Life and Crown Equity Release. 

Not all equity release providers offer enhanced terms. The concept is still relatively new to the market, although some established providers have embraced it and offer this type of plan.

Here are three examples of established equity release providers who offer medically enhanced lifetime mortgages:

Aviva. With Aviva’s ‘Lifestyle Flexible Option’, you may be eligible for a lower interest rate or able to release more money with an enhanced loan to value (LTV). You may also be able to ring fence a higher proportion of your home’s value for your beneficiaries with Aviva’s inheritance guarantee, compared to borrowing on standard rates. 

Just. The medically underwritten ‘Just For You’ lifetime mortgage also lets you borrow more or get a better interest rate if you are eligible. According to Just, six in ten people could qualify. 

More2Life. This is another provider that lets you release more money with an enhanced lifetime mortgage for some medical conditions and lifestyle choices. 

In addition, although there are fewer providers of home reversion plans on the market compared to lifetime mortgages, at least one of them offers enhanced plans where you can release more money if you are eligible. This is Crown Equity Release, who are specialists in home reversion. 

Get your personalised equity release quote 

To find out more about medically enhanced equity release, and to check your eligibility, call our friendly team on 0808 178 3055 or request a free call back here. They can arrange an appointment with one of our selected advisers who can answer all your questions, take you through a medical and lifestyle questionnaire, and get personalised quotes from leading providers.

About Richard Groom. A writer with 20+ years’ experience across several sectors including financial services, Richard has a passion for writing clear and simple content on even the most complex of subjects. In his spare time, Richard loves exploring the hills and mountains of the UK on long walks with his faithful cocker spaniel. Follow Richard on LinkedIn