The plan allows those with a range of common medical conditions to release equity from their homes. The plan is available for property valued over £70,000, with a minimum cash release of £15,000. Customers must be over 65 years of age and will receive a tax-free lump sum and secure lease for life.
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Customers are considered on an individual basis and a report from their GP. Conditions that will be considered eligible include heart conditions, diabetes, stroke and cancer.
Gavin Howard, chief operating officer of In Retirement Services, commented: “Our plan allows clients to raise money more cost-effectively to reflect their health with the added certainty that their debt will not grow if they live longer than expected.
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“We anticipate that about one-in-three customers in this age group are likely to qualify for enhancements under the plan and they could typically expect a 30 per cent reduction in the cost of borrowing.”
Dean Mirfin, business development director for Key Retirement Services, commented: “One of the arguments with equity release is that it doesn’t take into account the state of someone’s health, so in principle the plan is great. But it’s only of benefit for people who want to borrow more than is typically available. One of our concerns is that, in principle, the lender won’t have the client on their books for as long as a healthy client.”
