Not many years ago, the word commercialisation was little known to people and it was hard to form a relationship between health and business. Today, people are far more aware of their health and how it affects their daily lifestyles, pleasure and business. The concept of health and business has also brought new products on the market where a health and lifestyle questionnaire is very important.
Health and Lifetime Mortgages
Property and equity release schemes have been a topic of hot discussion in the last few years especially after the housing boom of the past. As a house owner or even an avid reader, you probably know that equity release plans now allow customers to have a lump sum amount over and beyond the usual maximum limit. However, this is largely dependent on the age of the homeowner(s) and the property value in question. However by now answering a health and lifestyle questionnaire lenders can now recalculate the maximum advance available.
This is the new method lifetime mortgage lenders use to determine if the customer has a qualifying health condition in relation to an equity release proposition over the standard limits. This questionnaire will help equity release providers know if a person is a smoker, check his or her Body Mass Index (BMI) and any other health related matters. The seriousness of the issues is the evaluating factor on how large the lump sum amount of equity release can be.
Ironically, the worse your health, the better it is for you get a maximum lump sum amount. Of course, equity release schemes differ from one lender to another and just like no two lenders are alike except in the fundamental rules, it is hard to find two people appear at same health condition using the questionnaire.
This type of lifetime mortgage is known as the enhanced lifetime equity release. There are other product types out there that might be better suited to your needs should you not qualify for any health issues.
1. Lump sum
2. Interest Only
The above three lifetime mortgages are another option if you require equity from your home, but do not qualify for the enhanced lifetime loan. The lump sum mortgage is not very different from the enhanced mortgage at all. In fact the only difference is the amount of the lump sum. It will be less than the enhanced mortgage since there are many years left, at least that is the premise, of the home owner.
An interest only version allows the homeowner to make payments on their mortgage for the accruing interest. It leaves the lump sum principle amount the same from the time the mortgage is attained to its completion at the end of life. The drawback is a need for disposable income to make the monthly payment.
Drawdown mortgages have compounding interest just like the lump sum and enhanced mortgage; however, it is only going to accrue on the money used by the homeowner. With a drawdown mortgage there is an account of money available. A person can draw what they need from it and the unused portion is never charged interest.
As you can see while there is news of a new product on the market that is beneficial to those with health issues, there are still some great products for those with a standard life expectancy should you not qualify for the specialised product.
Advice on Lifetime Mortgage Products
An independent equity release adviser should advise you of this health check if you are looking for an equity release however it is highly recommended you do your homework and research all the possibilities. This will help you in gathering the questions you may want to ask and seek answers for specific situations. In the last few years, this trend has been fast catching up. This also showcases the not so good part of society where people are not focusing on their health. This is an intangible feedback that lays stress on how we need to address the health issues.
As far as the equity release schemes are concerned, experts recommend that you keep a check on the rules and regulations as they are bound to change at regular intervals without prior notice. Companies that offer such enhanced equity release schemes are Partnership & more2life & to obtain a quote on either of these then contact the specialists in this field who are Equity Release Supermarket. Fill out a health and lifestyle questionnaire to see if you might qualify.
Our clients are satisfied with their new lives!
National Equity Release Pension Conference, Bath Street, Bakewell, Derbyshire, DE45 1BX.
You can also contact us by phone , or you can send us a message here: