As part of its flexible repayment option, More 2 Life Premier Choice plan customers can make repayments of up to 10 per cent a year of the lump sum loan with minimum payments of just £50, enabling customers to adjust payments to suit their finances and circumstances.
The company is also offering a new lower interest rate of 5.38 per cent (market exchange rate) on loan-to-values (LTVs) of up to 55 per cent.
The plan is available for lump-sum borrowing with a minimum age of 60 and a minimum property value of £70,000.
The minimum loan size is set at £15,000 and the minimum further advance available is £7,500.
The plan also includes the More 2 Life guaranteed inheritance feature to enable customers to plan ahead and protect up to 50 per cent of their home’s value as an inheritance for dependants.
The company said the launch was part of a series of product developments to see the lender focus on the equity release market.
Dave Harris, managing director at More 2 Life, said: “Growth in the equity release market is being driven by innovation and specialist advice and there is growing demand for increased flexibility.
“Many retired homeowners welcome the ability to make the repayments on their loans when they can afford to do so while retaining the ability to borrow more if needed.
“Brokers and clients tell us they value flexibility on repayments, which is why we have designed Premier Choice to provide that facility.”
Dan Farrow, director of Essex-based SBN Wealth Management, said: “Any additional flexibility that is introduced for products such as this has to be welcomed.”