Peter Lucas, chief executive of Newlife, said the new product aims to make it easier for homeowners to transfer a significant amount of their housing equity into a lump sum. It offers an interest rate of 6.35 per cent, and maximum LTVs ranging from 25 per cent for those aged 60 to 51 per cent for those aged 85 or over.
Key features
* Arrangement fee of £750 (England and Wales) or £800 (Scotland).
* Free valuations; £400 subsidy if property value over £500,000.
* £125 title insurance fee for remortgages (replaces solicitor disbursements).
* Application fee of £99.
* Minimum age 60, no maximum age.
* Minimum £15,000 advance, maximum £510,000.
* Minimum £500 commission for advisers, maximum £10,000.
IFA verdict
Paul Wilson, managing director of Preston-based Key Retirement Solutions, said: “Its LTVs are in line with others available. It will be interesting to see, once the product is dropped into the whole of the market, how it fares in terms of interest rates, because it could be quite competitive. But the LTV ratios are not wildly different to what’s out there already. It will be more in terms of where it fits as a combination of LTV and interest rate.”
