The loan, financed by a mutual lender, accepts both the property sale and sustainable retirement income as a repayment vehicle.

It is offered to a maximum of 50% LTV on minimum property values of £300,000 up to a maximum of £500,000.

The loan is offered from 5.74% and a fixed rate option is available to April 2014, with all cases considered on their merits. Another loan is available to all age groups to a maximum LTV of 50% and for loans of over £250,000.

Tony Bunting, co-founder of Platinum Options, said: “Platinum is always striving to get solutions for its intermediary partners where their options are limited. This product will go some way to filling a gap in the mortgage marketplace.”

Andrew Montlake, communications director, at City-based broker, Coreco, said lenders have been very slow to respond to the reality of rising retirement ages.

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“This has become a massive issue for the mortgage market and one you could argue isn’t Treating Customers Fairly (TCF) because most mortgage providers only lend to 70 or 75 years of age.”

This is a straight mortgage contract so very different to an equity release deal, he added.

“Something needs to be done. People are working longer and can get to 65 and realise they need to make their biggest asset – their home – work much harder to raise some badly needed cash,” said Montlake.