Enhanced Lifetime Mortgage Lifestyle Questionnaire

The enhanced lifetime mortgage lifestyle questionnaire aims to assist equity release lenders to calculate how much they would release. By using a series of health questions, they are able to establish the health record of an individual applicant.

Using experienced underwriting knowledge, similar to enhanced lifetime annuity plans, impaired equity release providers can then use an actuarial approach to lending. Once the severity of the applicants health record has been assessed, a judgement can then be made on how much can be released.

This decision will be down to calculating the typical life expectancy of the individual. Knowing how much their health has been impaired, will determine how much life expectancy has been reduced by. Armed with this knowledge, the enhanced mortgage company can then uplift the maximum amount they can lend.

What Questions are on a Lifestyle Questionnaire?

This will vary from lender to lender, however here we cover the main questions employed by the enhanced lifetime mortgage companies: –

  • Your height and weight
  • Have you smoked 10 or more cigarettes for the past 10 years?
  • Do you have high blood pressure requiring prescribed medication?
  • Do you suffer from diabetes and require tablets or insulin?
  • Have you had a heart attack requiring hospitalisation
  • Do you have angina, requiring ongoing medication?
  • Have you suffered from a stroke, other than a mini stroke?
  • Have you ever been diagnosed from cancer, requiring surgery, chemo or radiotherapy?
  • Have you been diagnosed with Parkinson’s disease?
  • Have you been diagnosed with multiple sclerosis?
  • Did you take early retirement due to ill-health?
  • Are you currently taking prescribed medication?

How these Answers Affect the Release of Equity

Between lenders, they will collate the data from the lifestyle questions answered. They will consider how severe the applicants health is & then allocate a new loan-to-value ratio to help calculate the new maximum release.

Companies such as Aviva will also take into account the applicants Body Mass Index Score (BMI) to help calculate the maximum lump sum. Therefore, in this instance height-to-weight ratios are important. So if you are overweight, this will help increase the amount you can release.

Enhanced mortgage lenders are therefore looking for lifestyle health issues that will lower people’s life expectancy. The more the actuarial calculation reduces life expectancy, the greater the release of equity will be.

The difference between a standard equity release maximum and an enhanced maximum rate, could be as much as 15% EXTRA cash!

Ensure you always contact an enhanced equity release specialist before committing to any equity release decision.

Call freephone 0800 028 1933 or click here to request your lifestyle questionnaire.

These are lifetime mortgages. For further information & to understand their features and risks, ask for a personalised illustration.

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