Retirement solutions provider Hodge Lifetime has today launched a new lifetime product aimed at borrowers entering or in retirement.
The retirement mortgage is an interest-only lifetime loan which does not require capital repayment until the borrower dies or moves permanently into long-term care, although customers must pay the interest each month.
The initial rate of 4.75 per cent is fixed for five years after which it moves to a standard variable rate. After the initial five years, the loan can then be repaid with no early repayment charges.
Customers can borrow up to 50 per cent of the value of their property or £500,000, whichever is lower.
Mortgage Strategy revealed in July that the product was in the pipeline and after a pilot launch in August, the new product is to be rolled-out to the wider market today.