Owners of second homes and buy-to-let properties will be able to release capital through equity release thanks to new products from Retirement Advantage.
The range, called Landlord Options, will allow buy-to-let landlords to choose between three types of plan, and whether they pay off any of their lifetime mortgage balance. There are no affordability checks on these products.
Landlord Lifestyle Options will provide a cash lump sum upfront, with interest rolling up for the duration of the loan. Landlord Interest Select Options will allow the customer to choose to service some or all of the interest. Landlord Voluntary Select Options lets customers make a contribution of up to 10 per cent of the initial loan amount each year without facing an early repayment charge.
Buy to let landlords can take out these products on multiple properties, on any property in England, Scotland and Wales worth between £70,000 and £6m. Properties above £6m are reviewed on a case by case basis.
Tom Evans, managing director at Retirement Advantage Equity Release, said: “These are exciting times for the equity release market, with growth at record levels.
"With demand increasing, innovation of this kind is integral to meeting the needs of people across the country.
"We have listened to customers and to advisers, and these new products will allow owners of buy to let properties greater ability to make the most of their property wealth to live the retirement they want.”
However, Ron Radway, from the Essex Equity Release Advice Centre, said that the product would only serve a niche audience.
“Most buy-to-let properties are already mortgaged,” he said.
“However, I welcome the broadening out of equity release products.”
Retirement Advantage is also launching a range of equity release products for those with second homes.
The Second Home Options range will offer a similar set of product options to owners of properties which are not their primary residence as those being launched for buy to let owners.
Loans are available on property values from £70,000 to £6m, with properties above £6m reviewed on a case by case basis. To release equity from a second home, the property must be for the sole occupancy of the owner and must be used by the owner for at least four weeks every year.
