For landlords, the lender said its loans would allow owners to release cash from their portfolio tax free, leaving their entire portfolio intact.
The range includes three product options available to owners of buy-to-let properties:
- a cash lump sum upfront, with interest rolling up for the duration of the loan;
- allowing the customer to choose to service some or all of the interest;
- allow customers to contribute up to 10% of the initial loan amount each year without facing an early repayment charge.
All options have no affordability checks and landlords can take out a product on multiple properties, on any property in England, Scotland and Wales worth between £70,000 and £6m.
Properties above £6m are reviewed on a case by case basis.
Second home owners
The Second Home Options range will offer a similar set of product options to that for buy-to-let landlords.
However, the property must be for the sole occupancy of the owner and must be used by the owner for at least four weeks every year.
Retirement Advantage Equity Release managing director Tom Evans said: “As with our broader product range, these new offers will give customers real flexibility in deciding whether they service just the interest, make interest and capital repayments, or let the interest roll-up.
“These are exciting times for the equity release market, with growth at record levels. With demand increasing, innovation of this kind is integral to meeting the needs of people across the country.
“We have listened to customers and to advisers, and these new products will allow owners of buy-to-let properties greater ability to make the most of their property wealth to live the retirement they want,” he added.
