The Retirement Planning Mortgage has no maximum age and will allow customers to borrow up to 70% loan-to-value, 40% of which can be on an interest-only basis.

Interest rates are calculated based on the borrowers individual circumstances but are variable in all cases and start from 5.24%.

Ivan Gould, chief executive of The Buckinghamshire, said lenders are forcing borrowers to repay their interest-only mortgages when the term expires typically when the customer has reached retirement.

“We’ve designed this product to help those borrowers who do not wish to sell their property,” said Gould.

“It allows older people to stay in their homes for longer. We believe there is no other product like this on the market to help people with their retirement plans.”

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A minimum property value of £300,000 applies to applications and while a maximum term of 25 years is stipulated, Gould said this can be extended once it is reached, subject to an individual case assessment.

The product is only available through “super broker” distribution channels such as AToM, Pink, Platinum and Legal & General.

Another use for the product is inheritance tax planning, said Gould. Subject to the correct advice, parents can choose to take out a mortgage to pass on the equity to their children and providing they survive seven years after the transfer it will be exempt from inheritance tax.

An arrangement fee of 1% (minimum £1,500) is charged which can be shared with the broker and the product carries a £99 booking fee.

Procuration fees are paid at 0.35% up to a maximum of £1,000 or subject to an individual arrangement.