The launch comes after a pilot last year and will be supported by a television advertising campaign.
The loan is secured against the customer’s home and pays out a regular monthly income – instead of a one-off lump sum or drawdowns.
Income from the mortgage is designed to help people maintain their standard of living in later life and make the most of their active retirement years.
Interest rates are fixed for the life of the loan, with payouts of at least £200 a month over a fixed term of 10, 15, 20 or 25 years.
The TV ad airs for the first time today and aims to challenge the traditional view of retirement by showing how lifetime mortgages can help people to enjoy a more colourful life after work.
A series of four quick scenes, from spa breaks to modest home improvements, are designed to show how the product can enhance life for retirees.
Steve Ellis, chief executive of Legal & General Home Finance (pictured), said: “There’s no one-size-fits-all solution for later life, so whether it’s enabling our customers to make monthly interest repayments or to use their housing wealth to enjoy life’s little luxuries, we’re there to help them have a more colourful retirement.”