L&G has announced that its Income Lifetime Mortgage is now available in England, Scotland and Wales for homeowners aged 55 and above.
Originally issued on a pilot basis in November, the product enables customers to release property equity as regular income, choosing from receiving at least £200 a month over 10, 15, 20 or 25 years, with an initial loan amount of £2,500.
Interest on the mortgage will roll up over the life of the loan. The loan and interest will be repaid from the sale of the borrower’s property upon the last surviving borrower’s death or a move into long-term care.
At the end of the fixed term, the monthly income will stop and interest will continue to roll up until the mortgage is repaid.
The product announcement is being accompanied by TV advert campaign that depicts various older homeowners enjoying a “colourful” retirement.
L&G Home Finance chief executive Steve Ellis comments: “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.”