The product is called Heritage Freedom 40 and Pure says this 40% overpayment allowance is the most flexible in the equity release market. The next best product allows 12.5% overpayments.
In addition, Freedom 40 allows up to 12 repayments each 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 who want to make either monthly payments at a higher amount than any equity release product will currently allow; or a single large payment from an anticipated future lump sum, typically from a pension pot, inheritance or investments.
As with the rest of Pure’s Heritage range, Freedom 40 is available to applicants from age 55 with no maximum age cap. Loan-to-values can be between 21.38% and 52.25% depending on the number of applicants, their ages, and the product type.
The new product will accept properties valued from £70,000 up to £2 million, with loan sizes up to £600,000 that can be taken as either lump sum or drawdown facility.
Brendan Gilligan, head of products at Pure Retirement, 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.”
Head of intermediary sales at Pure Retirement, Chris Flowers, 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.”
