Its Capital Choice plan allows homeowners looking for a higher lump sum to make partial repayments from day one if they wish to reduce their debt liability before the end of the term. The plan is available up to 55% loan-to-value and the maximum plan size has recently been increased to £1m.
The partial capital repayment option means clients can repay up to 10% of the initial loan each year without incurring early repayment charges.
More 2 Life has predicted the equity release market will lend more than £2bn by the end of the year, which would be a record for the market.
Stuart Wilson, channel marketing director said the market was flourishing as the number of intermediaries advising on equity release increased and new lenders entered the market, expanding the range of products available.
Figures from the Equity Release Council released last month revealed the market had achieved its highest quarterly lending levels in quarter two as advances exceeded £500m.
Santander is the latest lender to announce its intentions to offer later life products, announcing a five-year tie-up with Legal & General which will allow it to offer mortgages to borrowers with endowment policy shortfalls or homeowners who don’t want to downsize in retirement.
Key Retirement will provide lifetime mortgage advice to Santander’s customers