Enhanced Lifetime Mortgage

Enhanced Lifetime Mortgages: Discover How Your Poor Health Can Be Advantageous

Learn How You Can Get the Most Out of Your Home's Equity With an Impaired or Enhanced Lifetime Mortgage Plan, to Meet Your Health & Wellness Needs.

Before You Start Reading....

Let's See How Much You Can Release 👇

 

Equity Release Calculator

Value of Your Home?

50000

Drag me

🔒 100% Secure & Fast. Takes Just 8 Seconds.

Enhanced Lifetime Mortgage

It's VERY FAST, takes just 8 seconds

Want To Get An Even Bigger Loan? You Can With Enhanced Lifetime Mortgages

Are you retired and do you have specific health issues that are worrying you? Do you own a home that’s worth over £70,000 in the UK? Well, then you’re eligible to take out an Enhanced Lifetime Mortgage plan as a form of borrowing money for your health issues.

Let’s look into enhanced lifetime mortgages.

What is an Enhanced Lifetime Mortgage Plan?

An enhanced lifetime mortgage plan, also known as an impaired lifetime mortgage plan, gives you a reasonable amount of money or low-interest rates compared to the standard lifetime mortgage plans that are out there. This mortgage plan is a lifetime mortgage option that will offer you capital. This capital or equity is tied up, as a manner of speaking, in your home. It’s specifically created for people over the age of 55 that own a home.

Now:

There are some prerequisites to taking out such a lifetime mortgage plan. The property that you want to release equity from needs to be within the UK. Your property needs to be valued at £70,000 minimum.

Best of all!

This enhanced mortgage plan allows you to access more equity and cash if your health is low. At the same time, other lifetime mortgage plans don’t offer this fantastic benefit.

What does this mean for you?

Well, to qualify for this lifetime mortgage plan and you have health issues, listen up. As mentioned before, you’ll be eligible for the enhanced or an ill-health lifetime mortgage scheme if you suffer from pre-existing health conditions, you’re older than 55, and own a home worth more than £70,000 and in it’s the UK.

Pre-Existing Health Conditions That are of a Concern

Pre-Existing Health Conditions That are of a Concern

And how does this mortgage plan offer you more when you have health issues? The enhanced lifetime mortgage plan works according to the principle that your life expectancy is probably lowered due to your ill-health. Some of the medical conditions they cover are:

  • Diabetes
  • Parkinson’s disease
  • Multiple sclerosis
  • Cancer and in need of surgery, chemo or radiotherapy
  • High blood pressure
  • Angina, heart attacks, a stroke etc.
  • If you’re a tobacco or cigarette smoker

Simply put:

The weaker your health is, the more cash you’ll be allowed to unlock from your property, and the lower your interest rates will be.

It’s a well-known fact that health issues increase as one gets older, or that’s a fact for many people today. The stats are that at least retired people suffer from high blood pressure or have had a severe heart attack. Therefore, funny enough, if you have a history of medical illnesses you could be getting added benefits!

Let me tell you something:

It seems to be in your best interest to take out an equity release plan, such as the enhanced lifetime mortgage plan. You’ll gain access to more capital, and you’ll pay much less interest compared to other mortgage plans on the market.

Better yet:

Your provider can use the same backing as annuities, and they’ll use your life expectancy ratio to calculate how much cash you can get out of your equity release plan.

Breaking Down How Enhanced Lifetime Mortgages Work

Breaking Down How Enhanced Lifetime Mortgages Work

Providers offer these plans as a lump sum or on a drawdown basis. They’re very similar to the enhanced annuity plans, but the enhanced lifetime mortgage plans give you a decent lump sum. But also, the more serious your health history is, the more cash you’ll receive out of this plan. The catch behind the benefit is lower life expectancy, unfortunately.

Now:

You receive a cash lump sum from the get-go. This means a successful equity release from your property. You don’t need to make monthly repayments, and it’s tax-free money you unlock. The release equity has fixed duration interest rates which then compounds throughout the plan.

So, once the owner dies or needs permanent medical care, their provider will sell the property and the remaining funds will pay off the mortgage, the rest will go to close family or heirs of the estate.

What’s The Criteria To Qualify?

To qualify and apply for an enhanced lifetime mortgage plan, your health history comes into consideration. Due to life expectancy being a primary factor of these mortgage plans, your provider will offer you a reduced interest plan and more capital.

Now:

As mentioned above, providers offer a questionnaire on health and lifestyle where they consider:

  • If you’re a smoker
  • Your BMI², or body mass index
  • Your blood pressure levels
  • Angina, heart attack, or strokes
  • Cancer
  • Multiple sclerosis or Parkinson’s disease
  • Diabetes
  • If you’ve retired earlier because of your ill health
  • Any prescription medication

After filling in their questionnaire, they’ll be able to tell you how much they’ll loan you. However, the list isn’t all-inclusive. So if you have any other disease, let your provider know, and they might be able to release even more capital for you.

How Is The Plan Calculated

How Is The Plan Calculated?

Enhanced lifetime mortgages are calculated using the age of the youngest homeowner or applicant and their property portfolio. However, if they have any impairments, then the provider will do some more calculations to make sure you get the most money possible with your circumstances.

Now:

The way to calculate illness or impairment level works is by using a health and lifestyle questionnaire, which contains direct questions. If the applicant has any of the listed conditions, the provider will have to offer you the enhanced plan, depending on how severe your impairments or illnesses are.

Let me just say…

Every provider has its rules and requirements on increasing your loan or decreasing your interest rates. Every provider also has its way of estimating your life expectancy, which also affects your loan amount.

Best Companies Offering an Appealing Package

The Best Companies Offering an Appealing Package

Equity release companies specializing in the impaired lifetime mortgage plans include, but are not restricted to:

  • Aviva Equity Release Reviews
  • More2Life
  • Just Retirement

These brokers offer you higher maximum lump sums than their standard terms.

They also contain some differences:

  • The Aviva Lifestyle Flexi Plan offer you with a decreased interest rate if the maximum amount isn’t required.
  • More2Life offers you an enhanced drawdown facility with an increased cash reserve for the future.
  • Just Retirement then offers you a more comprehensive Lifestyle Questionnaire which considers other conditions that other equity release plans don’t cite.

Common Questions

What Is An Enhanced Mortgage?

What Is A Medically Enhanced Equity Release Plan?

Is Enhanced Lifetime Mortgage A Good Idea?

Can You Pay Back An Enhanced Lifetime Mortgage?

In conclusion

It’s relatively easy to determine what amount you can get when you take out an enhanced mortgage through an equity release provider. You simply need to input a few details, and there you have it.

It’s a great and empowering option if you need to borrow some extra or much-needed cash and you have an illness or impairment. If you’re still considering whether or not enhanced lifetime mortgages are for you, feel free to contact us with any further questions.

How Much Can You Release?

Use the FREE Calculator Below 👇

 

Equity Release Calculator

Value of Your Home?

50000

Drag me

🔒 100% Secure & Fast. Takes Just 8 Seconds.

Enhanced Lifetime Mortgage

It's VERY FAST, takes just 8 seconds

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

 

  1. Responding to the Housing and Financial Crises: Mortgage Lending, Mortgage Products and Government Policies
    2011 European Journal of Housing Policy Volume: 11, Issue: 1, pp 23-49 DOI: 10.1080/14616718.2011.548585
    Kathleen Scanlon 1,Jens Lunde 2,Christine M. E. Whitehead 1
    1 London School of Economics and Political Science ,2 Copenhagen Business School 12345
  2. An exploratory analysis of payoffs for the lifetime mortgage of farming assets and its policy implications
    2018 Agricultural Economics-zemedelska Ekonomika Volume: 60, Issue: 9, pp 406-419 DOI: 10.17221/189/2013-AGRICECON
    Gil H. Park ,Deokho Cho 12
  3. Housing Finance and Monetary Policy 2009 Social Science Research Network Alessandro Calza 1,Tommaso Monacelli 2,Livio Stracca 1 1 European Central Bank ,2 Bocconi University 1
  4. Housing finance and monetary policy 2009 Research Papers in Economics Alessandro Calza 1,Tommaso Monacelli 2,Livio Stracca 1 1 European Central Bank ,2 Bocconi University 12
  5. Developing Equity Release Markets: Risk Analysis for Reverse Mortgages and Home Reversions 2014 The North American Actuarial Journal Volume: 18, Issue: 1, pp 217-241 DOI: 10.1080/10920277.2014.882252 Daniel H. Alai 1,Hua Chen 2,Daniel Cho 3,Katja Hanewald 1,Michael Sherris 1 1 University of New South Wales ,2 Temple University 123
Taylor Holt - 300x300

Written by
Taylor Holt
Estate Planning Expert

Taylor Is Our Resident Estate Planning Expert. He Knows That Everything Revolving Around Wills or Funeral Planning Can Be a Sensitive Subject That People Don’t Like to Discuss. But He Also Knows How Important It Is to Know All There Is to Know About It. Taylor Makes It His Mission to Spread Awareness About Estate Planning, and We Believe Everyinvestor Is the Best Platform to Do That.

Monique - 300x300

Written by
Monique Pittman
Pensions Expert

Monique Is Our Resident Pensions Expert. Many People Postpone Planning Out Their Pension, Thinking That Is Something They’ll Have to Worry Much Later in Life. Monique Knows How Important It Is to Start Planning Your Pension Early, and She Wants You to Know It Too!

Enhanced Lifetime Mortgage

Written by
Lisa Schilling
Insurance Expert

Lisa Is Our Resident Insurance Expert. She Knows How Important It Is to Be Ready for Any Scenario, Especially When a Family Member Is Involved. Nobody Likes Being Found Unprepared in a Tough Situation! Lisa Can Find the Best Insurance to Cover Your Every Need, Present and Future.

Doyle Edwards - 300x300

Written by
Doyle Edwards
Mortgages Expert

Doyle Is Our Resident Mortgages Expert. He Comes From a Long Line of Financial Gurus, and It Truly Shows. Despite His Young Age, There Is No Question He Cannot Answer When It Comes to Mortgages, and His Ability to See Outside of the Box to Find the Best Mortgage Deals Is Truly Impressive.

jason stubbs 300x300 1.jpg

Written by
Jason Stubbs
Equity Release Expert

Jason Stubbs Is a Specialist in the Equity Release Sector. He Enjoys Helping Older People Who Are Struggling Financially Get Out From Under Financial Pressure.

rachel w.jpg

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
francis.jpg

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
Mark Patterson

Written by
Mark Patterson
Mortgage Expert

Mark Patterson is a well-known expert in mortgages. He has been working as an expert for over 15 years, and he specializes in the UK mortgage market.
kath icon.png

Katherine Read
Consumer Affairs Writer

She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date

Nicola Date
Writer & Journalist

Nicola is a financial writer for EveryInvestor and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.