What Underwriting Criteria is Required for an Impaired Life Equity Release Mortgage

health conditionsNaturally, there are criteria for impaired life equity release plans. The plans are medically underwritten; however, there is no medical examination required. All that is required are medical records from your doctor and in some cases depending on what you have answered in the lifestyle questionnaire, you may be required to have a visit to your doctor for the purposes of a simple test to ascertain your life expectancy correctly. The providers of the lifetime enhanced mortgage plan will pay for any tests they require.

Here is an example of the standard questions that will be asked:

  • Your age
  • Whether you have smoked ten or more cigarettes per day
  • Do you have high blood pressure that requires regular medication?
  • Do you have diabetes, Type 1 or 2 that requires insulin or tablets?
  • Do you have angina that requires a spray or tablets to control?
  • Have you ever suffered a stroke?
  • Have you ever been diagnosed with a cancer that required treatment such as chemotherapy and radiation?
  • Have you been diagnosed with Parkinson’s disease?
  • Have you been retired early due to medical reasons?
  • Any medication you are currently taking

If you answer “yes” to any of these questions, you could be entitled to an impaired life equity release plan and you could borrow more money on the value of your property.

The minimum age is 55-years old to qualify and your home must have a current market valuation of £70,000 or more in order for you to qualify for an impaired life equity release plan. If a joint plan is being considered, then both of you will have to be at the minimum age limit. The basis of any joint impaired life equity release plan is that the younger of the two parties’ health is the one that is taken into consideration.

How much you can borrow depends on how many of the above questions you can answer “yes” to. The more questions that have an affirmative answer (for both of you if you’re considering a joint plan) the more that you will qualify for an impaired life equity mortgage and be able to increase the amount of money you’re able to borrow.

It’s worth highlighting that if you’re going to take a joint plan out and the youngest member of the plan is healthy, then an impaired life equity release plan may be declined and you will be offered a standard plan.

There are no costly medical examinations to endure. The simplicity of an impaired equity release plan is that you may only be asked to confirm your details with a visit to your GP or nurse for any confirmation so the provider can correctly actualise your life expectancy. There are no invasive medicals or detailed tests to be endured. The process is swift and simple without complications. Your impaired life equity release plan could be completed quicker than you think. The maximum amount you can borrow is based on your life expectancy and the value of your property at the time of applying for the loan.

Financial advice is imperative and using a specialist advisor in impaired equity release plans is vital to ensure you’re planning the right product.

As with any financial product it is important that the information provided is accurate and correct. Any in-principle impaired equity release plan offer will be withdrawn if it is found that there are inaccuracies on the information provided. There are more options after a period of time for further borrowings, however, this could be at an increased rate.

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