The product will be available to people aged 55 and over with a minimum property value of £100,000.

It is aimed at supporting consumers who prefer a fixed monthly income to a lump sum, or who have not been able to save as much into their pension as they would have liked.

Like Legal and General’s flexible lifetime mortgage range, interest on the mortgage will roll up over the life of the loan. The loan and interest will be repaid from the sale of their property upon the last surviving borrower’s death or a move into long-term care.

However, with an income lifetime mortgage, the effect of compound interest is reduced as funds are released in monthly amounts, rather than lump sums.

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Customers will be offered an interest rate that is fixed for life at the outset, while the monthly income from the mortgage will run for an agreed term of 10,15, 20 or 25 years and cannot be extended.

At the end of the fixed term, the monthly income will stop and interest will continue to roll up until the mortgage is repaid. Consumers can choose to stop this income at any point, but once stopped the income cannot be restarted.

Steve Ellis, CEO at Legal and General Home Finance (pictured), said: “We know how useful that little bit of extra income could be for so many people to keep them doing the things they love.

“Our income solution is a new option for these consumers, giving them the chance to enjoy the benefits of their housing wealth with a fixed interest rate for life, but with the security of a regular monthly income for up to 25 years.

“There is a bright future ahead for retirement lending and we want to see more people benefit from the positive role their homes can play in later life.”