Financial adviser network Openwork has launched a lifetime mortgage in partnership with Canada Life.
The network is licensing adviser firms to pilot a monthly income drawdown lifetime mortgage, as part of its planned "significant expansion" into the at-retirement market.
Income drawdown mortgages are products that allow customers to take out money when they like.
An Openwork spokesperson said the proposition was designed to support clients looking to "optimise the financial planning and tax-efficiency opportunities" from pension freedoms and was developed following client and adviser research.
The product follows the standard age requirements of its provider, Canada Life, and applicants need to be at least 55 years old with an age limit of 90.
Openwork has also joined the Equity Release Council as part of its push into the sector.
John Cupis, mortgage director at Openwork, said there was significant client demand for the new proposition.
He said: "Clients seeking income in retirement are often faced with multiple options and therefore require clear guidance and advice about accessing income from housing equity as well as their pensions and investments.
"True holistic advice is the key to helping clients find their way through the maze of options at retirement."
Mr Cupis said monthly income products were a recent innovation in a continually evolving lifetime mortgage market.
He said an important factor in the selection process was to offer a product with specified early repayment charges (ERC) rather than ERCs that are gilt-based.
"We also wanted a product that had flexibility to stop, reduce or increase the monthly income," he added.
Mr Cupis said he expects product innovation to continue in the market space as lenders seized the opportunity to develop pre, during and post-retirement products for an "increasingly diverse" range of situations.
He added: "Property wealth has a major role to play in helping clients make the best use of their assets and we are delighted to be working with Canada Life."
Tom Evans, managing director at Canada Life Home Finance, said: "We are delighted to be working with Openwork on this innovative new product development.
"We believe their forward thinking approach to holistic advice will open more opportunities for clients to access income from property.
"Our focus on providing excellent customer outcomes means our products meet genuine customer needs, we have been impressed by Openwork’s focus on the end customer and are excited to be working with them."
Openwork hopes to recruit an additional 250 advisers over the next three years as part of its growth ambitions, aiming to increase the number of wealth advisers in its restricted business from 750 to in excess of 1000 by the end of 2021.
rachel.addison@ft.com
