The Hodge Retirement Mortgage sees borrowers repay the interest on the loan monthly with the capital being repaid when the borrower either dies or moves permanently into long term care.
Deian Jones, managing director of Hodge Lifetime, said: “The current range of equity release products caters very nicely for the asset rich, cash poor customer.
“For those fortunate to be entering retirement with decent pension provision, the Retirement Mortgage offers a credible and flexible alternative to the more traditional equity release plan.”
The product also offers borrowers the chance to repay the loan after 5-years without incurring any early repayment charges.
For those that choose to keep the Retirement Mortgage for life they have the option to roll-up interest once they turn 80 and are also offered the added security of a no negative equity guarantee.
Jon Tweed, sales director at Hodge Lifetime, said: “Borrowers who intend to downsize later in life, or those whose personal circumstances are likely to change, may not feel that traditional equity release products are a viable option. The Retirement Mortgage has been designed with this in mind.”