The Retirement Mortgage, an interest only lifetime mortgage, fills the gap between a traditional residential mortgage and existing interest roll up lifetime mortgages.
It provides a flexible alternative for borrowing into retirement for those borrowers that benefit from a reasonable level of retirement income.
The product is flexible because, after 5-years, the loan can be repaid without incurring any early repayment charges.
This puts the borrower in control of their mortgage and means that the product may be more suitable for those who envisage a change in their circumstances during retirement.
Jon Tweed, sales director at Hodge Lifetime, said: “After launching the Retirement Mortgage In September last year, the plan was always to ‘bed’ the product in over a number of months prior to promoting to the whole of the market.
“The initial response since launch has been excellent and its availability via the sourcing system will ensure advisers working in the later life sector have access to this alternative to traditional roll up products which is not suitable for everyone,”
Ian Teague, managing director, iPipeline: “We are pleased to offer advisers access to an even wider range of products on our equity release service, with the addition of Hodge Lifetime’s Retirement Mortgage.
“These products will enable advisers to offer something different and respond to the diverse needs of their clients, adding further innovation to the equity release marketplace.”