More2Life has had a more recent entry into the equity release marketplace than other lenders like Hodge Lifetime. They are also following Partnership and Aviva in offering enhanced equity release plans. The More2Life Enhanced Lifetime Mortgage was developed with flexibility to separate it from other products on the market, as well as to make it one of the more flexible schemes available. This enhanced mortgage can also be taken as a drawdown lifetime mortgage where future cash benefits are available.

The Qualification Process
More2Life qualifies homeowners based on age, health criteria and property value. More funds are released to the homeowner if they qualify for chronic health issues. There is a comprehensive questionnaire used to determine what health issues a person has and if it qualifies them. More2Life does not require a medical examination to qualify one’s health for the equity release loan.

The health and lifestyle questionnaire is only one qualification factor. The youngest homeowner must be the individual with an illness and this person must be at least 55 years of age. The property value must be £60,000 for a loan to be granted. The property being used for the enhanced mortgage must be located in England, Wales or mainland Scotland.

How Does the More2Life Enhanced Equity Release Plan Work?
More2life will initial qualify how much the applicants can release as an overall enhanced maximum equity release lump sum. From there the homeowner can decide how much of this facility they wish to take initially, with the amount not taken being then held in a cash reserve facility for future withdrawal if required.

The two advantages of the More2life enhanced plan are they are the only enhanced lifetime mortgage that offers an enhanced drawdown lifetime facility. This therefore provides a greater facility than normal & enables retirees to have a bigger reserve facility they can use in the future. The second advantage is the fact that being a drawdown plan only the amount actually withdrawn is charged interest on. Therefore, the enhanced drawdown facility, as big as it was, is not charged interest until the homeowner decides too.

Key Features of the More2Life Enhanced Equity Release Scheme
Besides the cash reserve facility, as part of the drawdown feature of this plan, More2Life also offers inheritance protection. For the drawdown facility homeowners can take an initial sum of cash that is smaller than a lump sum mortgage. The minimum sum a homeowner can withdraw at first is £10,000. The rest of the funds are left in an account to be accessed when the homeowner needs more funds. Compounding interest only accrues on the initial lump sum and any subsequent withdrawals of funds.

Inheritance protection is available to protect a fixed percentage of the property value based on the homeowner’s request. This amount is basically fenced in to be untouched by the homeowner and More2Life throughout the life of the loan.

Early repayment is possible and subject to potential redemption penalties. More2Life does not offer any special incentive for early repayment. The fee is based on a calculation of the linked gilt index and the age of the loan at the time of repayment. This is to cover the company for their return on investment, which can be lower if an early repayment is made.

Incentives to Choose More2Life Plan
More2Life offers free valuation of a homeowner’s property as well as upto £1,000 cash back upon completion of the loan paperwork.