The group’s market share would have more than doubled to 7.2% if all applications received had been processed during the three months demonstrating growing demand for More 2 Life’s innovative product range which provides enhanced terms for customers with medical or lifestyle impairments.
The strong pipeline of applications following the group’s first full three months of operation supports More 2 Life’s confidence for 2011 as it aims to deliver ambitious expansion plans against an equity release market which has seen an ongoing decline in the value of funds released.
However More 2 Life believes more innovation and increased use of personalised underwriting on equity release is needed for the market to improve business levels.
Jon King, managing director of More 2 Life, said: “The equity release market has enormous potential but needs to adapt to the changing needs of consumers and advisers.
“Market statistics show products are changing with increasing use of drawdown but there remains a need for further innovation.
“The market share achieved by More 2 Life – and our strong pipeline of applications – indicates there is an appetite for product changes and we aim to continue that process during 2011.”
More 2 Life estimates around 25% of equity release customers would qualify for enhanced terms based on its health questionnaire which covers issues such as smoking, diabetes, height-to-weight ratio, high blood pressure and early retirement through ill-health in addition to medical conditions including cancer and heart conditions.
The firm, which initially launched a lifetime mortgage with rates of between 6.99% and 7.49%, is the first to offer higher loans-to-value to customers with medical conditions or lifestyles which could affect life expectancy and is the only lender that enables customers to protect a level of equity in their property for beneficiaries.
Its minimum initial cash release is £15,000. Minimum property values are £70,000 and there is no maximum.
