Legal & General Home Finance has launched an equity release product which pays out a regular monthly income called the Income Lifetime Mortgage.
The mortgage pays out monthly income rather than a lump sum or a drawdown that a borrower can request.
This income is at least £200 a month over a fixed term of 10, 15, 20 or 25 years, while interest rates are fixed for the life of the loan.
The full launch follow a November pilot.
Steve Ellis, chief executive of Legal & General Home Finance, said: “The vocabulary of retirement is very muted. Pensioners spend their ‘grey pounds’ in their ‘golden years’. We can be ‘silver surfers’, ‘silver foxes’ or even ‘golden oldies’ but it all paints an image of a life with the colour drained out.
“As our new TV advert shows, later life couldn’t be more different. People are enjoying a colourful and fun retirement that includes spa breaks, meals out with friends or treating the grandkids.
“At Legal & General we’re always looking at different ways to help people to get the most from a modern retirement, whatever their plans, dreams and goals might be.
“There’s no one-size-fits-all solution for later life, so whether it’s enabling our customers to make monthly interest repayments or to use their housing wealth to enjoy life’s little luxuries, we’re there to help them have a more colourful retirement.”
The launch is accompanied by a television campaign, airing for the first time today, aimed at challenging perceptions about later life and making retirement more ‘colourful’