Just Group has unveiled a lifetime mortgage product that enables Saga customers to receive a monthly payment.

It combines an initial lump sum payment with ongoing monthly payments – all tax-free. The firm claims it is an “ideal choice” for people looking to supplement their retirement income.

This product is exclusively available through the Saga Equity Release Advice Service, provided by HUB Financial Solutions Limited.

To be eligible for the Saga Regular Drawdown Lifetime Mortgage, people must be aged 60-80 with a UK property worth at least £150,000.

Paul Turner, managing director, retirement lending, international and business development at Just Group, said: “This product is completely unique in the market and satisfies a customer need that existing lifetimemortgages do not cater for.

“Customers who need to top-up their monthly retirement income to pay domiciliary care fees or to supplement pension income can now do so by accessing some of the value stored intheir property.

“People in the UK aged over 55 have housing equity worth in excess of £2.5 trillion, yetmany people in later life do not have sufficient income to pay their essential expenditure. This is a solution to help those who are asset rich and income poor. We are delighted to have worked in partnership with Saga tobring this new product to market.”

Alex Edmans, head of product at Saga, added: “We are always talking with our members to understand what they need and how we might be able to help them more. It was clear from what our members told us that there is an appetite for an equity release product like this.

“We’re really pleased to be able to offer our customers this unique product thanks to the creativity and innovation of Just Group.”