A brand new type of equity release loan

Although some loan providers have been forced to leave the market and the recent years haven’t seen a great number of new deals, the equity release loan market is flourishing, with an increasing number of retired UK citizens obtaining such loans.

At the moment a new lender is going to enter the equity release loan market by the end of the current year, with the intention to provide consumers with a bit different loan type which is expected to be beneficial for many borrowers.

This new lender is Partnership, a company specializing in annuities on an improved basis for people with health problems. It will offer equity release loans based on its current product base.

Generally, equity release lenders do not consider health-related issues when setting up a new loan deal for retired people, and the maximum loan to value is predetermined by average life expectancy at a given age.

The average maximum loan to value range is 20%-50%, depending on age.  Thus, interest is added to the loan over its lifetime, without leading to a negative equity situation.

Yet, for people in poor health, life expectancy tends to be substantially shorter than for those of the same age without health problems, and it is unfair that they are not offered a higher loan to value on an equity release loan from most loan providers.

The new type of loan planned for release by Partnership is expected to enjoy great popularity among borrowers.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.