Enhanced equity release has untapped potential

Two-thirds of more 2 life’s lending by value through intermediaries was enhanced in the first three months of 2014.

The lender achieved a market share of 11% of equity release plans sold through intermediaries in the first quarter.

Wilson said: “Enhanced equity release is a growth area in a growing market which is delivering improved outcomes for customers when they need to boost retirement finances.

“However the potential of enhanced equity release is not being fully realised partly due to a lack of training for advisers and a reluctance to ask simple questions.

“Enhanced annuities have taken a major share of the market and enhanced equity release has the same potential.”

More 2 life is planning a series of webinars to meet demand from advisers.

The lender pioneered enhanced equity release in 2010, offering improved LTVs to customers with medical conditions or lifestyles affecting life expectancy.

It offers individual underwriting which assesses factors such as weight, smoking, general health and early retirement on ill-health grounds.