diff --git a/apps/openmw/mwclass/npc.cpp b/apps/openmw/mwclass/npc.cpp
index 778120466f..b6af9f0e57 100644
--- a/apps/openmw/mwclass/npc.cpp
+++ b/apps/openmw/mwclass/npc.cpp
@@ -109,6 +109,11 @@ namespace
             creatureStats.getAttribute(attribute).setBase ( std::min(creatureStats.getAttribute(attribute).getBase()
                 + static_cast<int>((level-1) * modifierSum+0.5), 100) );
         }
+
+        // initial health
+        int strength = creatureStats.getAttribute(ESM::Attribute::Strength).getBase();
+        int endurance = creatureStats.getAttribute(ESM::Attribute::Endurance).getBase();
+        creatureStats.setHealth(static_cast<int> (0.5 * (strength + endurance)) + 4 * (creatureStats.getLevel() - 1));
     }
 }
 
diff --git a/apps/openmw/mwgui/charactercreation.cpp b/apps/openmw/mwgui/charactercreation.cpp
index 6a6c596be6..d1e103dd35 100644
--- a/apps/openmw/mwgui/charactercreation.cpp
+++ b/apps/openmw/mwgui/charactercreation.cpp
@@ -10,7 +10,10 @@
 #include "../mwbase/environment.hpp"
 #include "../mwbase/soundmanager.hpp"
 #include "../mwbase/mechanicsmanager.hpp"
+#include "../mwmechanics/creaturestats.hpp"
+#include "../mwworld/class.hpp"
 #include "../mwworld/fallback.hpp"
+#include "../mwworld/player.hpp"
 
 namespace
 {
@@ -41,6 +44,14 @@ namespace
         // Note: Order is taken from http://www.uesp.net/wiki/Morrowind:Class_Quiz
         unsigned int points[3];
     };
+
+    void updatePlayerHealth()
+    {
+        MWWorld::Ptr player = MWBase::Environment::get().getWorld()->getPlayer().getPlayer();
+        MWMechanics::CreatureStats& creatureStats = MWWorld::Class::get(player).getCreatureStats(player);
+
+        creatureStats.updateHealth();
+    }
 }
 
 namespace MWGui
@@ -334,6 +345,8 @@ namespace MWGui
             mCreationStage = CSE_ClassChosen;
             MWBase::Environment::get().getWindowManager()->popGuiMode();
         }
+
+        updatePlayerHealth();
     }
 
     void CharacterCreation::onPickClassDialogBack()
@@ -461,6 +474,8 @@ namespace MWGui
             mCreationStage = CSE_RaceChosen;
             MWBase::Environment::get().getWindowManager()->popGuiMode();
         }
+
+        updatePlayerHealth();
     }
 
     void CharacterCreation::onBirthSignDialogDone(WindowBase* parWindow)
@@ -484,6 +499,8 @@ namespace MWGui
             mCreationStage = CSE_BirthSignChosen;
             MWBase::Environment::get().getWindowManager()->popGuiMode();
         }
+
+        updatePlayerHealth();
     }
 
     void CharacterCreation::onBirthSignDialogBack()
@@ -547,6 +564,8 @@ namespace MWGui
             mCreationStage = CSE_ClassChosen;
             MWBase::Environment::get().getWindowManager()->popGuiMode();
         }
+
+        updatePlayerHealth();
     }
 
     void CharacterCreation::onCreateClassDialogBack()
@@ -715,6 +734,8 @@ namespace MWGui
             mCreationStage = CSE_ClassChosen;
             MWBase::Environment::get().getWindowManager()->popGuiMode();
         }
+
+        updatePlayerHealth();
     }
 
     CharacterCreation::~CharacterCreation()
diff --git a/apps/openmw/mwgui/levelupdialog.cpp b/apps/openmw/mwgui/levelupdialog.cpp
index 5857db4d2e..7c0191d495 100644
--- a/apps/openmw/mwgui/levelupdialog.cpp
+++ b/apps/openmw/mwgui/levelupdialog.cpp
@@ -173,12 +173,7 @@ namespace MWGui
                     attribute.setBase(100);
             }
 
-            // "When you gain a level, in addition to increasing three primary attributes, your Health
-            // will automatically increase by 10% of your Endurance attribute. If you increased Endurance this level,
-            // the Health increase is calculated from the increased Endurance"
-            creatureStats.increaseLevelHealthBonus (creatureStats.getAttribute(ESM::Attribute::Endurance).getBase() * 0.1f);
-
-            creatureStats.setLevel (creatureStats.getLevel()+1);
+            creatureStats.levelUp();
             pcStats.levelUp ();
 
             MWBase::Environment::get().getWindowManager()->removeGuiMode (GM_Levelup);
diff --git a/apps/openmw/mwmechanics/actors.cpp b/apps/openmw/mwmechanics/actors.cpp
index f55b00094d..baa264aa4e 100644
--- a/apps/openmw/mwmechanics/actors.cpp
+++ b/apps/openmw/mwmechanics/actors.cpp
@@ -76,10 +76,6 @@ namespace MWMechanics
         double magickaFactor =
             creatureStats.getMagicEffects().get (EffectKey (ESM::MagicEffect::FortifyMaximumMagicka)).mMagnitude * 0.1 + 0.5;
 
-        DynamicStat<float> health = creatureStats.getHealth();
-        health.setBase (static_cast<int> (0.5 * (strength + endurance)) + creatureStats.getLevelHealthBonus ());
-        creatureStats.setHealth (health);
-
         DynamicStat<float> magicka = creatureStats.getMagicka();
         magicka.setBase (static_cast<int> (intelligence + magickaFactor * intelligence));
         creatureStats.setMagicka (magicka);
diff --git a/apps/openmw/mwmechanics/creaturestats.cpp b/apps/openmw/mwmechanics/creaturestats.cpp
index 19d2080211..569ccd5927 100644
--- a/apps/openmw/mwmechanics/creaturestats.cpp
+++ b/apps/openmw/mwmechanics/creaturestats.cpp
@@ -18,16 +18,35 @@ namespace MWMechanics
             mAiSettings[i] = 0;
     }
 
-    void CreatureStats::increaseLevelHealthBonus (float value)
-    {
-        mLevelHealthBonus += value;
-    }
-
     float CreatureStats::getLevelHealthBonus () const
     {
         return mLevelHealthBonus;
     }
 
+    void CreatureStats::levelUp()
+    {
+        const MWWorld::Store<ESM::GameSetting> &gmst =
+            MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>();
+
+        const int endurance = getAttribute(ESM::Attribute::Endurance).getBase();
+
+        // "When you gain a level, in addition to increasing three primary attributes, your Health
+        // will automatically increase by 10% of your Endurance attribute. If you increased Endurance this level,
+        // the Health increase is calculated from the increased Endurance"
+        mLevelHealthBonus += endurance * gmst.find("fLevelUpHealthEndMult")->getFloat();
+        updateHealth();
+
+        mLevel++;
+    }
+
+    void CreatureStats::updateHealth()
+    {
+        const int endurance = getAttribute(ESM::Attribute::Endurance).getBase();
+        const int strength = getAttribute(ESM::Attribute::Strength).getBase();
+
+        setHealth(static_cast<int> (0.5 * (strength + endurance)) + mLevelHealthBonus);
+    }
+
     const AiSequence& CreatureStats::getAiSequence() const
     {
         return mAiSequence;
diff --git a/apps/openmw/mwmechanics/creaturestats.hpp b/apps/openmw/mwmechanics/creaturestats.hpp
index 63de13d0d4..da8b5842a6 100644
--- a/apps/openmw/mwmechanics/creaturestats.hpp
+++ b/apps/openmw/mwmechanics/creaturestats.hpp
@@ -95,10 +95,14 @@ namespace MWMechanics
         float getFatigueTerm() const;
         ///< Return effective fatigue
 
-        // small hack to allow the fact that Health permanently increases by 10% of endurance on each level up
-        void increaseLevelHealthBonus(float value);
         float getLevelHealthBonus() const;
 
+        void levelUp();
+
+        void updateHealth();
+        ///< Calculate health based on endurance and strength.
+        ///  Called at character creation and at level up.
+
         bool isDead() const;
 
         bool hasDied() const;
diff --git a/apps/openmw/mwmechanics/stat.hpp b/apps/openmw/mwmechanics/stat.hpp
index e9b7f43850..606671389a 100644
--- a/apps/openmw/mwmechanics/stat.hpp
+++ b/apps/openmw/mwmechanics/stat.hpp
@@ -98,8 +98,8 @@ namespace MWMechanics
         public:
             typedef T Type;
 
-            DynamicStat() : mCurrent (0) {}
-            DynamicStat(T current) : mCurrent (current) {}
+            DynamicStat() : mStatic (0), mCurrent (0) {}
+            DynamicStat(T base) : mStatic (base), mCurrent (base) {}
             DynamicStat(T base, T modified, T current) : mStatic(base, modified), mCurrent (current) {}
             DynamicStat(const Stat<T> &stat, T current) : mStatic(stat), mCurrent (current) {}