Equity release lender more 2 life has launched capital choice lite products, offering customers a monthly equivalent rate (MER) from 4.02% for lump sum and 4.32% for drawdown plans.
The products are available through advisers for all homeowners aged 55 and over.
Dave Harris, chief executive at more 2 life, said: “At more 2 life, we are driving innovation in the market and are continually striving to offer customers the widest range of products that have practical features.
“As such, we are delighted to announce the launch of our capital choice lite products, which look to build on the popularity of our capital choice plan and meet the needs of the growing equity release market.
“We have worked closely with advisers to develop products that their clients want and that provide them with the flexibility they need.
“The lifetime mortgages market has experienced a staggering 25% annual increase in new loans over the last year, according to the Equity Release Council’s Spring Market Report.
“In order to continue this robust growth, the industry must continue to focus on creating innovative products with the modern lending features. Due to increased competition in the market this has driven equity release interest rates to some of the lowest they’ve ever been.
“Increased product innovation gives borrowers more choice when accessing the wealth tied up in their homes – and more 2 life intends to be at the forefront of these exciting market developments.”
Like the current variants of capital choice, capital choice lite comes with the following features as standard: fixed early repayment charges, partial repayments from day one, downsizing protection and inheritance protection of up to 50% for lump sum plans only.
The plans are suitable for homeowners who are looking to borrow between £15,000, up to a maximum of £1.5m, with the ability to make partial capital repayments.
Homeowners also have the option of the drawdown plan if they would like to take out further draws from their facility from just £2,000 up to a maximum drawdown of double the initial loan amount.