The product is available to retirees over the age of 70. LTV ratios begin at 36% rising to 45% at age 78 after which ratios are capped with no upper age limit.
Paul Carter, managing director of Pure Retirement, said: “We are immensely proud to be the first new provider to enter the market for more than three years and we are all hugely excited at the path lying before us in the months and years ahead.
“We anticipate that our launch will open the door for more prospective providers which in turn will ensure the sustained health and growth of the equity release market.”
Features of the plan include; no medical requirements, a fixed interest rate for life, no maximum LTV and properties over £1m in value will be accepted.
Future drawdowns from the plan will be subject to commission payments for advisers.
For loans over £45,000 there is no arrangement fee and Pure Retirement will contribute £600 to clients’ solicitors fees and £500 to adviser fees.
Pure Retirement is also offering free valuations on properties up to the value of £500,000 and refunded valuation fees for properties valued between £500,000 and £1,000,000.
Equity release specialist adviser Ron Radway, owner of the Essex Equity Release Advice Centre, said: “A lot of the features of this product are fairly standard but that is the nature of equity release products, there aren’t many variables which can be played around with which make any real difference.
“But the unique selling point of this product is the contribution the provider is making to the fees. No arrangement fee on loans over £45,000 is a good feature. And the contribution to the adviser fee is in some cases going to make this product completely fee free.
“Let’s hope it is not just an opening gambit.”
Pure Retirement, a sister company to Age Partnership, is a member of the Equity Release Council.
