Just Group is now offering personalised interest rates and LTV options, unique to each borrower, throughout its ‘Just For You’ equity release range.

This is achieved through providing medical underwriting for every case, which the firm first introduced into its annuity products.

The majority of borrowers will be required to answer up to 24 questions on their medical history and health, with more complicated cases needing input from the client’s general practitioner.

Research from Just shows that up to 60% of equity release customers will qualify for a better deal as a result of this move.

Various scenarios provided by Just shows one customer moving from an interest rate of 3.71% on their lifetime mortgage without medical underwriting to 3.18% with medical underwriting, and another describing a maximum LTV uplift of 3%.

Just retail propositions director Sarah Morris-Simpson says that clients will be able to borrow more of, or make savings of, “the tens of thousands of pounds,” in some cases.

The firm also believes that medical underwriting within the equity release market will become an industry standard – and soon.

“This should spread quickly because of the regulatory pressure in treating customers fairly,” says group communications director Stephen Lowe, adding: “and advisers are used to broaching the subject of health with their clients.”

He continues: “This could mark the beginning of the end for standard lifetime mortgage interest rates.

“[This] has been a big hit with advisers for giving a menu of options and features such as interest-servicing, tiered interest rates, drawdown options, payment holidays, cashback, access to additional borrowing and fixed early repayment charges.”

Responsible Life chief customer officer Noel Abbot adds: “The move that Just is making has to be applauded, as it is clearly designed to improve customer outcomes by medically underwriting and pricing borrowing based on mortality linked to health rather than mortality linked to age alone.”