Retirement Advantage has launched an equity release product aimed at high net worth individuals.
The Prestige Options product is available on UK properties valued up to £6m and provides customers with a one-off cash payment.
Due to the interest added to the loan, customers will not have to make any monthly payments.
Alice Watson, head of product and marketing at Retirement Advantage Equity Release, said the product will give these property owners the opportunity to release a sizeable cash lump sum in order to boost their retirement finances.
She said: "Having received many enquiries from homeowners in high value properties, we believe now is the time to offer a product specifically suited to their needs.
"Owners of high value properties are sitting on substantial stores of wealth, which could make a significant contribution to their retirement planning, alongside pensions and other assets.
"Having the option to use property wealth in this way makes perfect sense and our product will offer property owners much greater flexibility. This product has also been designed in response to the growing number of clients who intend to use their property to gift funds to their children as part of an intergenerational wealth transfer.
"As equity release continues to grow, product providers must continue to innovate and evolve products to suit the widest possible range of property owners. We are now better placed than ever to help homeowners tap into property as well as other assets to live the retirement they want.”
Retirement Advantage’s Prestige Options product is available to property owners aged 60-years-old plus.
The minimum loan amount available is £250,000, and properties valued at more than £6m will be reviewed on a case-by-case basis.
The annualised interest rate is 5.29 per cent.
The product also has the option of a cash reserve facility for an additional 0.2 per cent on a customer's monthly interest rate.
Prestige Options are covered by a range of Equity Release Council safeguards including a no negative equity guarantee, and the right to remain in the property.
Martin Bamford, chartered financial planner for Surrey-based Informed Choice, said: "We are seeing a growing interest in the use of equity release to boost accessible levels of wealth in retirement.
"It won't be the right solution for everyone, but for older individuals with sizeable property wealth who are prioritising their lifestyle in retirement ahead of leaving an inheritance for the next generation, it will be something to consider.
"Product providers will want to secure the most profitable segments of this market, which will include fewer deals on larger values.
"The Equity Release Council safeguards mean that equity release can be used safely, as long as the interest roll up, impact on future inheritance and planning for long-term care are all considered properly at outset."