Partnership launches impaired life equity release product

Partnership has launched an equity release product offering better rates for those suffering from conditions such as diabetes or cancer.

The enhanced lifetime mortgage is available to property owners aged 60 and over whose property is worth at least £70,000.

Minimum cash release for the mortgage is £25,000 and homeowners will not be charged a fee when they take out the product. There will be a fixed annual interest rate of 7.65%.

"We did customer research and we found that the cost of paying for the valuation up front and then the other charges was proving a real barrier to sales in a market where people are short of cash," says Partnership's managing director - equity release Ged Hosty. "It seemed counterproductive to give people cash with one hand and take it away with the other in the form of charges. We do have an interest rate charge and I feel this has improved the transparency of the charging structure."

In addition to those suffering from long term conditions like diabetes and high blood pressure, smokers will also receive better rates with this product.

Eligibility is assessed through a medical questionnaire with 12 yes or no questions. Partnership believes this will pick up the vast majority of conditions and estimates up to 40% of over 60s will be able to qualify for some type of enhancement.

The product offers a no negative equity guarantee and inheritance protection is also guaranteed as standard.

According to Partnership research one in four people in the UK are in or face an impoverished retirement yet many live in properties worth more than £160,000.