The specialist lending arm of Coventry Building Society has introduced several lifetime mortgages which are available initially through intermediary partners.
Two product types are offered; lump sum and drawdown with a design to offer complete flexibility to the borrower.
The lump sum product is offered at a rate of either 6.15 or 6.45 per cent, the former with 5 per cent of the balance repaid for the first five years with 3 per cent of the balance repaid for the following five years.
The latter has no early repayment charges (ERCs).
In the drawdown offering, there are two products offered starting from 6.29 per cent and 6.59 per cent fixed for the term. On the 6.29 per cent product, the same details apply as the 6.15 per cent product.
All products come with free valuations and include an arrangement fee of £595.
Colin Franklin, managing director of Godiva Mortgages, commented: “Changing attitude to retirement planning and increasing confidence in the sector shows that there is a genuine need for this type of product.
"Equity release is one of the few products that is life-changing and it needs to be properly advised – as long as it is, it can be really valuable. This is a market where ERCs are an issue as some providers will charge for the whole term or long term.”
Dan Baines, sales and marketing director at Age Partnership, said: “For far too long product providers have been wary about this sector due to bad publicity surrounding some unregulated plans in the 1990s.
"The entry of a trusted name such as Godiva Mortgages into the market will help to build both intermediaries’ and their customers’ faith in this product sector.”
