The AToM Retirement Mortgages allows consumers to borrow up to 40% of the property value on interest only at a rate of 5.74% variable over a 10 year renewable term.
The product comes with a £299 upfront booking fee and a £1,495 arrangement fee, and has a maximum loan size of £250,000.
Equity of £150,000 is required over and above the mortgage amount.
Dale Jannels, managing director of AToM, says the product is designed to meet a gap in the market.
He says: “This new exclusive is deliberately aimed to help mortgage customers who have attained retirement status still achieve their ambition to purchase or re-mortgage properties when most lenders have closed the door to them due to their age.”
He adds: “Rates and fees are competitive and we actively encourage borrowers’ off-spring to be party to the decision wherever possible. It also offers the flexibility to redeem after year one. I suspect this product will cause a lot of interest and thankfully our lending partner has funds and, more importantly, an appetite to lend.”