Retirement Advantage has added a fee free cashback product to equity release range.
The changes to its Lifestyle Platinum equity release product means that borrowers are eligible to receive a lump sum of 3 per cent of the value of their initial loan.
Tom Evans, managing director at Retirement Advantage Equity Release, said this option will prove valuable help in paying legal and adviser fees.
He said: “We’re constantly looking for ways in which we can increase accessibility. A number of customers have said that getting help with fees would be useful and that’s where the cashback option can really ease the process.
"The cashback facility could help to pay solicitors and advisers’ fees, and we will not be charging any fees of our own for this product.”
The new Lifestyle Platinum Cashback product comes on a competitive loan-to-value ratio of up to 50 per cent for those aged 78.
Should customers redeem their cashback option within the fixed early repayment charge (ERC) period, the cashback provided will be added to the ERC.
Mr Evans added: “The addition of a cashback option to our Lifestyle Options range underlines the level of product innovation and development in the equity release market.
"As a result, lifetime mortgages are proving hugely popular with people for a myriad of reasons, from wanting help to fund their retirement to releasing money to help with home improvements.”
However Stephen Jones, chartered financial planner at Birmingham-based Clear Solutions IFA, gave the launch of the product a muted reaction.
“Usually any innovation is welcome but this is only payable if redeeming the equity released.
"Therefore, this is simply another way of reducing the impact of the early redemption fee.
"I would have preferred a cheaper redemption fee."
The Lifestyle Options were added to Retirement Advantage’s product range in April.
The product range is available to consumers aged between 60 to 90-years-old and offers a tax-free, one-off lump sum and instead of making interest repayments, the interest rolls up and is added to the mortgage each month.