The lender launched into the market in February with the creation of its Pure Drawdown Plan, having promised to ‘shake-up’ a stagnant equity release sector.
Pure Retirement has now bolstered its range with the release of the Pure Lump Sum Plan. The provider said the creation of the product has followed extensive discussion with intermediaries.
The lifetime mortgage product is available to retirees over 60 and allows them to convert some of the equity in their home into a one-off cash advance.
Loan-to-value ratios begin at 24.5% and can rise to 52% at age 85. Interest rates are fixed for the duration of the plan and loans are available between £10,000 and £250,000 in Wales and up to £600,000 in England.
Paul Carter, managing director of Pure Retirement, said: “As we move towards the second half of 2014, it’s clear the equity release market has continued its momentum in which it entered the year. Equity release products have become an important, if not essential, source of retirement finance – and are set to play in even greater role in the years ahead, especially in the context of the sweeping changes announced in this year’s budget.
“We fervently believe that new and innovative products, such as our new lump sum plan, will safeguard the long-term health and growth of the market, by providing new sources of income for retirees.”
Carter wrote for Mortgage Solutions earlier this year how his firm made it to market and some of the challenges facing providers trying to enter the sector.
