Pure Retirement has launched a new Heritage Freedom 40 product, offering customers the ability to repay up to 40% of their loan each year ERC-free.
In addition, Freedom 40 also allows up to 12 repayments per year, allowing customers to set up a monthly payment and reduce the impact of interest roll up.
The product has been designed to cater for those that want to make either monthly payments at a higher amount then any equity release product will currently allow or a single large payment from an anticipated future lump sum, typically from pension pot, inheritance or investments.
The new products will accept properties valued from £70,000 up to £2m, with loan sizes up to £600,000 that can be taken as either lump sum or drawdown facility.
As with the rest of Pure’s Heritage range Freedom 40 is available to applicants from age 55 with no maximum age cap, and offers applicants LTVs between 21.38% and 52.25% depending on the number of applicants, their ages, and the product type.
Brendan Gilligan, Pure’s head of products, said: “The launch of this new product underlines our ongoing commitment to innovating and developing retirement solutions that continue meeting customer needs. Recent research from Knowledge Bank has highlighted ‘early repayment charges and ‘partial repayments’ as among the leading equity release search terms among consumers, and it’s exciting to be able to offer a new product that meets customers’ increasing appetite for flexible products.”
Chris Flowers (pictured), head of intermediary sales, added: “Amid the current uncertainty people are looking for products that not only suit their current needs but also affords them the flexibility should their circumstances change when the new normal resumes. With the market historically offering ERC-free repayments up to 10% of initial advance the fact that our new product offers up to 40% demonstrates our dedication to go above and beyond to provide our customers with products that not only meet their current needs, but potentially those in the future.”