The firm said it was responding to research which showed four out of five advisers believed lifetime mortgages were a key area for growth, with customers seeking equity release products proven to prefer face-to-face advice.
Timetables for a November launch, the Prudential Lifetime Mortgage will bring together two distinct plans under one single equity release wrapper.
It is designed to provide greater flexibility and more closely meet the needs of the individual and will be available both direct and through brokers for customers over the age of 55 – recently lowered from 60 years old.
One of the key product features is the ability for homeowners to guarantee an inheritance of either 10 or 20 per cent of their existing household equity to their heirs, without affecting the amount of equity they can release or reducing the LTV.
The product offers a transparent pricing structure with a menu approach so that customers can adjust the plan to suit their exact needs.
Customers taking out the plan will never run the risk of negative equity as a result of the scheme. The product is portable and the customer benefits from the security which comes from Prudential being a Safe Home Income Plans (SHIP) member.
Prudential has also launched the Lump Sum plan and re-branded its existing drawdown product as Increasing Cash Reserve.
Keith Haggart, business director of retirement income at Prudential, said: “The equity release market has grown rapidly and is established as a reputable part of the financial services marketplace. However, it now needs to move on to a new level and offer products which adapt to the changing retirement landscape.
“Prudential’s Lifetime Mortgage will be one of the most flexible of all Drawdown products on the market, allowing customers to withdraw money at any point during their retirement with no time limits on the availability of the reserve and no additional review. The introduction of the lump sum plan adds further accessibility to the product.”
Ali Crossley, marketing director at Prudential: “The over 65’s currently hold £1.1 trillion in property assets, with this fact alone meaning that the explosion of the lifetime lending market is inevitable.”
