Just Group has launched a new lifetime mortgage product.
The firm reports that its new product has greater flexibility than most, giving an array of interest serving options available from £25 a month on up to 100 per cent of the monthly interest amount.
Different interest rate tiers result from the amount of interest repaid by the borrower.
The product is available to borrowers aged from 55 years across the entire Just for You range.
A cash facility is available to all borrowers who don’t take the maximum LTV, and those choosing an interest-serviced option can elect to take a payment holiday of up to three months in each policy year.
The tiered interest rate reductions consist of 1bp off the roll up interest rate on up to 25 per cent, 10bps on up to 50 per cent, 15bps on up to 75 per cent and 30bps on up to 100 per cent.
Just Group retirement leading managing director Paul Turner says: “The Just For You Lifetime Mortgage transforms our existing mortgage proposition by combining new and existing features into a single, 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.
“The tiered rates provide an incentive for borrowers to make interest payments and the reduction in interest payment is a unique feature in the market. Customers making interest payments on the main loan also have the option to do so on any additional borrowing,” he adds.
Key chief executive welcomes the new product. He says: “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”.