The product is called the Simple Life mortgage and is aimed at homeowners keen to release a cash lump sum of between £10,000 and £40,000, with amounts up to £30,000 considered upon individual referral.
The mortgage is available on a capital and interest repayment basis and allows overpayments at any time without incurring a penalty. There is also the option to take the mortgage past the state retirement age or to consider converting it to a lifetime mortgage in the future.
The mortgage comes in three different plans all of which are three-year fixed rate deals, converting to a variable rate thereafter. The maximum LTV offered is 75%.
The Star plan offers a rate of 9.52% to homeowners with no CCJs or defaults. The Select plan has a rate of 11.3%, while the Standard plan has a rate of 12.19% and is available to self-employed borrowers with one CCJ or default within 20 years.
Peter Turley, director at Newlife said that the Simple Mortgage is aimed at homeowners whose financial circumstances have altered and are “unlikely to qualify for a loan through a mainstream lender.”
He said: “Our underwriting criteria is based on affordability but it is flexible, for example, we take account of income from state benefits, which is unusual.
“This is a new product which we think will be popular and there will be demand for it.”
Peter Lucas, chief executive of Newlife added: “The launch of the Simple Life mortgage is tangible evidence that we are committed to expanding the range of products our intermediaries can offer to their customers.
“It provides Newlife with the scope to realise its ambitious growth plans for the future and means we can offer a more comprehensive range of home-related financial products designed to satisfy differing customers’ needs.”
