It can, in some cases, but it is never certain. Some lenders offer enhanced terms to people with certain health conditions or lifestyle factors, and sometimes that means a higher loan to value than the standard figure for your age. Whether anything is offered, and how much, is entirely the lender's decision.
How the amount is normally worked out
A lifetime mortgage is not assessed on your income. The most you could borrow is worked out mainly from your age and your home's value. If there are two of you, it goes on the younger age.
In some cases, your health and where you live also play a part. That is the part this page is about.
Where your health comes in
Some lenders take health into account. Some lenders offer enhanced terms for applicants with certain health conditions or lifestyle factors, and some factor in previous health impairment. In some cases this means a higher loan to value than the standard table, which could increase the amount available to you. Plans like this are often described as enhanced lifetime mortgages.
It feels like an odd thing to benefit from. But it is worth mentioning rather than assuming it counts against you.
It is not every lender, and it is not every condition. Each lender sets its own criteria, and those criteria change. Some lenders may offer more, or less, than an indicative figure. Nobody can tell you in advance that your health will make a difference, and we will not.
Why our calculator does not include it
Our lifetime mortgage calculator uses an approved loan to value table for each age. It gives a useful indicative figure based on your age and your property's value. It does not factor in health, so a lender's actual figure could be different from the estimate, higher or lower.
You will be told the real numbers before you commit to anything.
How we look at it
When we search the market on your behalf, the factors we look at include your health and medical history, your property's type and condition, your postcode, and which lenders are offering competitive rates at the time. We advise across the whole of the market on lifetime mortgages.
So when we ask about your health, it is not small talk. Tell us about your health and medical history, even if you think it is not relevant. It is for the lender to decide what counts.
For how the process works from first call to completion, see how to get an equity release quote.
More available is not a reason to borrow more
If a lender would let you borrow more, that is a ceiling, not a target.
Borrow only what you need. On a lifetime mortgage where the interest is not paid, interest is charged on the interest as well as on the original loan, so what you owe can grow significantly over time. The less you borrow, the less there is to compound.
Most plans include a drawdown facility, which lets you take an initial amount now and leave the rest available to draw on later. You only pay interest on what you have actually taken.
Equity release will reduce the value of your estate, and the money released could affect your entitlement to means-tested benefits.
Health, care and planning ahead
Some people use equity release to pay for care in their own home rather than move out.
If you are the only borrower and you move permanently into long term care, the loan becomes repayable, usually from the sale of the property, although it can be repaid from other money. If there are two of you and only one goes into care, the plan continues. Some plans waive early repayment charges if you move permanently into long term care. Whether yours does depends on its terms. There is more on this in what happens to equity release when you die or go into care.
If health is on your mind, a lasting power of attorney is worth setting up now. If you lose capacity without one, your family cannot deal with your property or your plan on your behalf without going to the Court of Protection, which is slow and expensive. See our page on power of attorney.
Health and equity release: common questions
What is an enhanced lifetime mortgage?
It is a lifetime mortgage where the lender takes your health or lifestyle into account. Some lenders offer enhanced terms for certain health conditions or lifestyle factors, and in some cases that means a higher loan to value than the standard table. Whether you qualify is the lender's decision.
Does health affect equity release?
It can. The amount is worked out mainly from your age and your home's value, but in some cases your health also plays a part. It is worth mentioning rather than assuming it counts against you.
Will I definitely get more if I have a health condition?
No. Some lenders offer enhanced terms, but not all, and not for every condition. The lender decides, and you may be offered the standard terms. You will be told the real figures before you commit.
Does your calculator take my health into account?
No. It gives an indicative figure based on your age and property value only. A lender's actual figure could be higher or lower.
Why do you ask about my health and medical history?
Because some lenders take them into account, so they are part of the whole of market search we do for you. What you tell us is used to find the plans you may be eligible for.
Not sure how any of this applies to your own circumstances? Craig is happy to talk it through, free and with no obligation.
Talk it through with Craig
If you have a health condition and want to know whether it could make a difference, that is a conversation, not a form. The first conversation is free.
Book a call with Craig or call 0113 403 5584.
