OneFamily has launched a high loan-to-value lifetime mortgage targeted at a "new group" of customers wanting to access a bigger amount of capital to meet their retirement needs.
The 'Super LTV Lifetime Mortgage' will allow borrowers over the age of 65 to release up to 58 per cent of the value of their property up to a maximum of £1m.
Borrowers can make annual voluntary payments of up to 10 per cent of the initial loan amount as well as early repayments which are charged on a sliding scale for the first eight years of the loan, with years one to three charged at 6 per cent, year four at 5 per cent, year five at 4 per cent, year six at 3 per cent, year seven at 2 per cent and year eight at 1 per cent.
After eight years no ERCs will apply.
Nici Audhlam-Gardiner, managing director of OneFamily lifetime mortgages, said the company had partnered with US investor Trans Atlantic Lifetime Mortgages Limited to launch the product.
She said: "This is the first time that the sector has attracted an investor of this type, it's a true innovation and an industry first.
"Attracting a prestigious US investor also demonstrates the growing attraction of the equity release market to investors."
Ms Audhlam-Gardiner said the product was designed to "open up the market" for advisers, targeting a new group of customers wanting to access a larger amount of capital to meet their retirement needs or increase the support they provide to the next generation.
She said: "The lifetime mortgage market is expected to surpass £5bn in 2019, up by over a billion from 2018 and the growth shows no signs of abating.
"As it continues to grow so does the need for new innovative products that support this growth, and the changing needs of homeowners seeking equity release."
Gary Webster, head of partnerships and independent adviser at Equity Release Supermarket, said: "
rachel.addison@ft.com
