Newlife breathed into Lump Sum Lifetime Mortgage
The edition offers interest rates of 6.35% monthly and 6.54% AER, with maximum loan to values ranging from 25% for those aged 60 to 51% from the age of 85.
Customers can use the product to release between £15,000 and £510,000 of housing equity, depending on their age and the value of their property.
Valuations are provided up to £500,000 free of charge, with a £400 subsidy above this threshold.
Peter Lucas, chief executive of Newlife, said: “Allowing customers to maximise the amount they can release from their property has been at the heart of Newlife’s offer since we launched in 2003.
“Having reached our tenth anniversary, we are as committed as ever to developing new solutions for advisers to help meet their customers’ financial needs.”
“Equity release is on the radar for a growing number of older borrowers in 2014, not least because of rising living costs, healthcare needs and inadequate pension income. Our new Gold Lump Sum Lifetime Mortgage will make it easier for homeowners to transfer a significant amount of their housing equity into a lump sum to use however they choose.”
Newlife has increased the commission available for advisers across its whole lifetime mortgage range, now paying a minimum of £500 and a maximum of £10,000. This includes the new Gold Lifetime Mortgage and the existing Flexible Lifetime Mortgage.
Lucas added: “Increasing our commission for advisers will help them to manage better with what promises to be another busy year for businesses across the industry, as more people tune into the many benefits that equity release brings in later life.”
The product launch follows Newlife’s expansion in 2013 when it was granted full permission by the Financial Conduct Authority to administer regulated mortgages from completion to redemption.