The 65+ mortgage is aimed at existing homeowners looking to take out a new mortgage, remortgage or who are not ready to consider a lifetime mortgage.
The product is available at a variable rate of 5.74%, has a maximum term of 25 years and early repayment charges of 3% in the first year only.
The product offers a maximum loan of £350,000 with the Loan to Value capped at 50%, including any fees added, and there must be £150,000 of borrower’s equity remaining in the property at completion.
Newlife also offers a free standard remortgage legal package.
Peter Lucas, chief executive of Newlife, said: “This product will allow borrowers to remortgage to a more competitive deal and increase the term of the mortgage thus reducing their monthly repayments. This product is one of very few, which will also allow other older homeowners who have the necessary income, to raise cash for whatever purpose they require through remortgaging or taking out a new mortgage.”
In other changes, Newlife’s flexible lump sum lifetime mortgage product now offers a free application and valuation fee on properties worth up to £500,000. It offers a cashback option available for a limited period and a choice of interest rates, compounded monthly: 6.24% with cashback of 0.75% of the initial advance capped at £2,000 or 6.14% without cashback.
The product requires an arrangement fee of £750 and includes a drawdown facility, allowing automatic inheritance protection at no extra cost when the maximum LTV has not been drawn.
Lucas added: “The free inheritance protection means that customers not taking the maximum amount available will automatically be able to secure some form of inheritance from their property. As we all know, one size does not fit all so by providing consumers and their advisers with access to improved products we ensure that customers can find the best possible deal for their situation.”
