Pure Retirement has launched an equity release product that allows for up to 40 per cent of the loan amount to be paid each year without attracting early repayment charges.

The ‘Heritage Freedom 40’ also allows for up to 12 repayments each year, thus reducing the amount of interest paid.

The new mortgage, Pure Retirement says, is available for borrowers aged 55 and over and at LTVs ranging between 21 per cent to 52 per cent, with maximum property values set at £2m.

The maximum loan size is £600,000 and can be accessed either as a lump sum or through a drawdown mechanism.

Pure head of products Brendan Gilligan comments: “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.”

The firm’s head of intermediary sales Chris Flowers adds: “With the market historically offering ERC-free repayments up to 10per cent of initial advance the fact that our new product offers up to 40 per cent 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.”