Frequently Asked Questions
The Just For You Lifetime Mortgage has been created to enable your clients to live better lives in retirement. Below are some FAQs we've produced to help answer any questions you may have around the product.
How do I access medical underwriting?
Medical underwriting is an option within the normal key facts illustration (KFI) and application process of the Just For You Lifetime Mortgage which must be chosen at the outset. You can request an instant KFI with immediate underwriting on the Just Adviser portal if you have a Just agency and are registered to the portal. Our KFIs are also available through the major sourcing systems – Iress, Air and Advise Wise.
Will my clients always get better terms with medical underwriting?
We estimate around six in 10 of your clients could qualify for a better outcome with medical underwriting, the only way to know for sure is to ask the questions.
Is the application process different to a standard one?
The process is no different to a standard lifetime mortgage application. There are some new, simple to answer questions about your clients medical conditions and lifestyle factors.
Why does life expectancy matter for equity release products and what difference does it make to a client?
Lifetime mortgage loan amounts are usually determined by a person's age and the value of their home.
If your client has a health condition or lifestyle that could impact their health, their life expectancy is less than the average for their age. That means they may be able to borrow more, or get a lower interest rate than our standard rate.
We’ve added medical underwriting across our lifetime mortgage range, so you can provide better deals to more clients.
Should my clients be worried if I don’t ask them for their basic health information?
Yes, because you may fail to give them our best deal.
Every lifetime mortgage client is different. Medical underwriting enables you to offer them a lifetime mortgage solution that’s personalised to them, their health and circumstances.
And it can help you respond to the FCA's challenge to demonstrate improved personalisation. The best way to offer truly personalised advice is by taking your client’s health and lifestyle into account.
Does medical underwriting impact a client’s ability to select other lifetime mortgage options?
No, it doesn’t. Your clients can choose flexible options like servicing interest, cashback and drawdown to tailor solutions that are specific to their needs and circumstances.
Doesn’t medical underwriting involve answering lots of questions, and doesn’t each lender use different questions?
We've developed a set of around 20 easy to answer questions that's also been adopted by other lenders. There are a few simple-to-answer questions; and you don’t need to be a medical specialist to answer them.
Requesting medical information from my clients will mean a change and addition to my process? How will this benefit me/my client?
Our underwriting questions are aligned to the other questions in your fact find. We’ve made them as easy to answer as possible and you don’t need to be a medical specialist to answer them.
By providing your client’s health and lifestyle information, they could qualify for enhanced/better terms and it can help you respond to the FCA's challenge to demonstrate improved personalisation of advice.
Why have you developed an interest serviced option? Isn't this a tiny area of the market?
We've developed this option to offer flexibility for your clients in a growing market. It could appeal to those who have an interest only residential mortgage with no means of paying it off. Although equity release can be used to repay existing debts it may end up costing the customer more in the long term.
Why should I use your product ahead of other providers that offer interest serviced products?
Our USPs in this area are:
- The reduced interest rates offered from the roll up rate to those clients who make monthly payments over those customers who do not choose this option
- Our payment holiday feature.
What is the impact of interest servicing on interest rate?
If the interest servicing option is chosen, there may be a reduction to the roll-up interest rate as documented in the client's offer letter. Clients choosing to pay 25.01% or more of the monthly interest amount can benefit from a 0.05% reduction to the roll up interest rate.
Can my clients start servicing interest on existing plans?
Customers cannot simply switch to servicing the interest as this is a new product feature with different Terms & Conditions. If they wish to take advantage of the monthly payment option, they'll need to redeem and re-apply if this is the recommended course of action following financial advice which they must seek in the first instance.
Will I be paid on any subsequent drawdowns clients make if they don’t access their full facility at the outset?
Yes, providing it meets your current terms. There are no plans as part of our product refresh to change the drawdown process.
Can someone else contribute towards my client’s mortgage each month?
Although family or friends could contribute to payments, we can only accept the monthly payments by Direct Debit from the customer's own personal bank account.
Will interest rates differ depending on the amount of repayments made every month?
Yes. Clients choosing to pay more than 25.01% of the monthly interest can benefit from a 0.05% reduction to the roll-up interest rate.
Why can’t I submit applications to you electronically?
We don't yet have online capability but this is something we are working on.