Equity Release  

Just unveils regular drawdown lifetime mortgage

Just unveils regular drawdown lifetime mortgage

Just Group has teamed up with Saga to offer a regular drawdown lifetime mortgage.

The group has launched a unique lifetime mortgage product that enables Saga customers to receive a monthly payment.

The new solution combines an initial lump sum payment with ongoing monthly payments, which are all tax-free.

Article continues after advert

Paul Turner, managing director for retirement lending, international and business development at Just Group, said: “This product is completely unique in the market and satisfies a customer need that existing lifetime mortgages do not cater for. Customers who need to top-up their monthly retirement income to pay domiciliary care fees or to supplement pension income can now do so by accessing some of the value stored in their property.

“People in the UK aged over 55 have housing equity worth in excess of £2.5 trillion, yet many people in later life do not have sufficient income to pay their essential expenditure. This is a solution to help those who are asset rich and income poor.”

This product is exclusively available through the Saga Equity Release Advice Service, provided by Hub Financial Solutions.

 To be eligible for the Saga Regular Drawdown Lifetime Mortgage, people must be aged between 60 and 80-years-old with a UK property worth at least £150,000.

Alex Edmans, head of product at Saga, said: "We are always talking with our members to understand what they need and how we might be able to help them more. It was clear from what our members told us that there is an appetite for an equity release product like this.

"We are really pleased to be able to offer our customers this unique product thanks to the creativity and innovation of Just Group."

Alan Lakey, director of CI Expert and Highclere Financial Services, said: “This will certainly appeal to those whose primary concern is a lack of income.

“Of course, this facility is already available using the facility that most equity release schemes offer - albeit less smoothly.

“There could be a negative in the way that pension credit is assessed in that an ongoing income could be reduce potential for claiming whereas drawing down from a facility would not be.”

aamina.zafar@ft.com