More 2 Life has launched an equity release product allowing surviving spouses to repay their loan early if their partner dies.
The provider has added the feature to its Capital Choice Plan for joint borrowers. It will enable a borrower to repay their loan within three years of the death of their partner without incurring an early repayment charge.
More 2 Life said the new feature will give borrowers the flexibility to sell their home in the event their partner dies, without incurring large charges.
The Capital Choice Plan is a lump sum lifetime mortgage, which offers a flexible partial capital repayment option. This is a latest in a series of new features introduced to the product, which has also recently lowered to minimum age for borrowers to 55.
More 2 Life chief executive Dave Harris said: "The equity release market saw record levels of growth in 2017 but it is vital for lenders to drive innovation in the market further to enable more borrowers to access the equity locked in their property.
"All the signs are pointing towards equity release becoming a more mainstream approach of accessing cash during retirement so it is imperative that older borrower have a greater range of options to choose from, which will provide them with the flexibility they require."
Other recently added features to the product include a guaranteed inheritance feature, which allows borrowers to product up to 50 per cent of the value of their property, and downsizing protection.
Jonathan Clark, mortgage partner at Chadney Bulgin said: "This is a useful feature that would allow a surviving spouse to downsize without worrying abut incurring an early redemption charge – that’s particularly useful as these can be complex and substantial on some equity release products."