Just Group has launched a lifetime mortgage solution offering a reduced interest rate depending on whether customers service the interest.
Those servicing up to 25% receive a 0.01% reduction from the roll up interest rate, up to 50% a 0.10% discount, up to 75% a 0.15% reduction and up to 100% a 0.30% saving.
Paul Turner, managing director, retirement lending at Just Group, said: “The Just For You Lifetime Mortgage transforms our existing mortgage proposition by combining new and existing features into a single, market-leading product. It is simpler, more flexible and offers advisers more scope to meet the needs of their clients.
“This innovation will support advisers to access new segments of the lifetime mortgage market and we look forward to introducing further innovation in 2019 to help even more people achieve a better later life.”
Customers can also choose to have a ‘payment holiday’ for up to three months per year.
The range is available to over 55s.
Turner added: “As one of the pioneers of the fast-growing lifetime mortgage market we know how important it is to give advisers more flexibility and innovation to help them better serve their clients.
“The Just for You Lifetime Mortgage transforms our existing mortgage proposition by combining new and existing features into a single, market-leading product. It is simpler, more flexible and offers advisers more scope to meet the needs of their clients.”
Will Hale, chief executive at Key, said: “Today’s product changes from Just are to be welcomed as they have taken a holistic view of their offering and introduced some innovative new features. The five tiers of “Just for You” Lifetime Mortgage offer a good range of options for advisers and are a welcome addition to the market.
“Introducing the option to repay some or all of the interest on an ongoing basis as standard is to be applauded as we are seeing an increasing number of customers who are looking for flexibility in how they manage their lending into and in retirement.
“In an ever more complex product landscape, good advice remains key and these new products from JUST further emphasise the need for customers to talk to a specialist who can search the whole market to compare and contrast the options available and ensure a solution tailored to their individual circumstances”.