The lender secured a 6% market share in the first quarter of 2011 – nearly three-quarters higher than the 3.5% share it held in the final quarter of 2010.
And the group, which offers enhanced terms for customers with medical or lifestyle impairments, is confident of continuing growth in 2011 thanks to a strong pipeline of applications received but not finalised in the three months to March 31st.
The group’s market share would have increased to 8.7% in the three months if all applications received had been finalised by March 31st.
Around two-fifths of sales in the three months came from drawdown products with the rest from lifetime mortgages in contrast to the experience across the equity release market as a whole where drawdown is the main seller.
More 2 Life’s success in a generally declining market and its strong pipeline underline its confidence that innovation and increased use of personalised underwriting on equity release will drive recovery in equity release.
Jon King, managing director of More 2 Life, said: “Enhanced equity release is firmly established in the market with a strong and growing share of new business.
“It recognises and meets immediate customer needs to maximise capital from their property wealth in response to their circumstances.
“Enhanced lifetime mortgages provide maximum payouts for customers when they need it and underline that there is an appetite for product innovation in the market.”
More 2 Life estimates around 25% of equity release customers would qualify for enhanced terms based on its health questionnaire which covers issues such as smoking, diabetes, height-to-weight ratio, high blood pressure and early retirement through ill-health in addition to medical conditions including cancer and heart conditions.
The firm, which initially launched a lifetime mortgage with rates of between 6.99% and 7.49%, offers higher loans-to-value to customers with medical conditions or lifestyles which could affect life expectancy and is the only lender that enables customers to protect a level of equity in their property for beneficiaries.
Its minimum initial cash release is £15,000. Minimum property values are £70,000 and there is no maximum.
