What is an Enhanced Lifetime Plan?

You may have heard of enhanced lifetime equity release plans being referred to as ‘impaired’ lifetime plans or mortgages. While the details are similar to ‘lump sum’ plans, there’s an important difference.

Lifetime mortgages are unlike standard mortgages – simply because they are only offered to people of a more senior age. The older the youngest applicant is, a larger sum or better interest rate can generally be offered. In a similar manner, ill health or a reduced life expectancy can sometimes mean that a greater lump sum amount or a more preferential interest rate can be offered by lenders.

The ‘enhanced’ element usually comes in the form of a detailed discussion about health and lifestyle. Where there is evidence of poor health, an enhanced product might be more beneficial compared to a standard plan.

Benefits of an Enhanced Lifetime Plan

For some people, the financial benefits of a lump sum lifetime mortgage might not meet the goal they were hoping to achieve. If this is the case, it may very well be worth looking at ‘enhancing’ the plan.

Enhancement can provide either a larger lump sum – or possibly a lower interest rate – both of which can be discussed and considered next to your financial plans when you talk to one of our expert advisors.

Even though some of the intricacies of an enhanced lifetime mortgage differ from more standard lump sum plans, some fundamental benefits still very much apply – including your right to retain ownership and occupancy of your home for the rest of your life.

• A person’s height and weight.
• Any history of heart conditions such as COPD, heart attack or high blood pressure.
• Any history of cancer, leukaemia, Hodgkin’s lymphoma, tumours or malignant growths.
• Neurological or central nervous system conditions such as a stroke, Parkinson’s, Dementia and Alzheimer’s

• A historic or current smoking habit.
• Any use of medication.
• Impaired work history, including early retirement owing to ill-health