Unlock More Equity with an Enhanced Lifetime Mortgage

What is an Enhanced Lifetime Mortgage?

It’s not often that medical conditions or habits like smoking work in your favour financially—but with an enhanced lifetime mortgage, they might. Being open about your health history could allow you to access more money from your home.

If you have a qualifying health condition or lifestyle factor, you could benefit from:

• A larger tax-free cash lump sum
• A lower interest rate than a standard lifetime mortgage
• A bigger drawdown facility for future withdrawals

Just like a standard lifetime mortgage, enhanced plans are available to homeowners aged 55+. You can choose to take the money as a lump sum or in smaller amounts over time. Typically, there are no monthly repayments, as the loan and interest are repaid when you pass away or move into long-term care.

No Medical Exams Required

You don’t need to undergo a medical to qualify for an enhanced lifetime mortgage. Instead, your adviser will ask a few simple questions about your health and lifestyle. If eligible, the lender may contact your doctor to confirm the details—that’s it!

How Do Enhanced Lifetime Mortgages Work?

Lenders assume that someone with certain health conditions may have a shorter-than-average lifespan, meaning they may not have the loan for as long. As a result, they are willing to offer more money or better terms.

Depending on your health and lifestyle factors, you may be able to:

• Access a larger tax-free lump sum
• Benefit from lower interest rates
• Secure a bigger drawdown facility for future withdrawals

You have the right to remain in your home for life or until you move into care. When the plan ends, your home will be sold to repay the loan and interest, with any remaining funds going to your beneficiaries.

Which Conditions Qualify for an Enhanced Lifetime Mortgage?

Many common health conditions can qualify you for an enhanced lifetime mortgage. If you’re applying as a couple, eligibility is based on the youngest borrower’s health and lifestyle.

Examples of qualifying conditions include:

• High blood pressure
• Diabetes
• Smoking history
• High or low BMI
• Parkinson’s disease
• Multiple sclerosis
• History of heart attacks, stroke, or angina
• Certain types of cancer
• Use of prescription medication

How Much More Could I Borrow?

The amount you can release depends on several factors, including:

• Your medical conditions and lifestyle factors
• The value and location of your property
• How much equity you have in your home
• Your age (or the age of the youngest applicant in a joint plan)

Older applicants can typically access between 25% and 60% of their property’s value. Most lenders require a minimum loan amount of £10,000. Speaking to an adviser will help you get the best deal based on your personal circumstances.

Who is Eligible for an Enhanced Lifetime Mortgage?

To qualify, you must meet the following criteria:

• Aged 55 or over and a UK resident
• If applying as a couple, the youngest homeowner must be 55+
• You must own a UK property worth at least £70,000

Which Lenders Offer Enhanced Lifetime Mortgages?

Not all lenders provide enhanced plans, but several do. Your adviser will compare leading UK providers to find the best options for you. Any lender must be regulated by the Financial Conduct Authority (FCA) and a member of the Equity Release Council.

FAQs

Is There a Difference Between a Lifetime Mortgage and Equity Release?

Yes. Equity release is a broad term that includes two main options:

• Lifetime Mortgage – You borrow against your home’s value but keep full ownership. Variations include drawdown plans, where you access funds in stages.
• Home Reversion Plan – You sell part or all of your home in exchange for a lump sum and live there rent-free.

What Are the Costs of an Enhanced Lifetime Mortgage?

Like any mortgage, there are fees involved, including:

• Lender’s valuation and arrangement fees
• Completion fees (paid upfront or added to the loan)
• Legal and solicitor fees
• Early repayment charges (if repaid before the plan ends)

Your adviser will provide a full breakdown of all costs before you proceed.

Are Enhanced Lifetime Mortgages Available Across the UK?

Yes! Whether you live in England, Scotland, Wales, or Northern Ireland, you can apply for an enhanced lifetime mortgage.

What Are the Risks of an Enhanced Lifetime Mortgage?

Equity release can be beneficial, but it’s important to consider the potential downsides:

• Interest rolls up over time, reducing the equity left in your home. Some plans allow optional interest repayments.
• Inheritance is affected—but some plans let you protect a portion of your home’s value for loved ones.
• Gifting money from equity release may have inheritance tax implications. Your adviser will explain this in detail.
• Early repayment fees may apply if you repay the loan sooner than expected.
• It may impact means-tested benefits. Your adviser will assess how equity release could affect your entitlements.