Pure Retirement has launched a new Heritage Freedom 20 product, offering the ability to repay up to 20% of their loan each year ERC-free.

Freedom 20 also allows up to 12 repayments per year, allowing customers to set up a monthly payment and reduce the impact of interest roll up. It builds on last year’s launch of Heritage Freedom 40, which allows for up to 40% repayments.

The Heritage Freedom product range has been designed to give customers greater flexibility when it comes to making optional repayments, giving them the ability to repay higher proportions ERC-free if they want to, should they seek to manage their plan in that way. It’s suitable for those who want to make either high-value monthly payments, or a single large payment from an anticipated future lump sum, from the likes of a pension pot, inheritance or investments.

As with last year’s Freedom 40 product, Freedom 20 is available to applicants from age 55 with an upper age cap of 80 at application, and offers applicants LTVs between 23.50% and 52.32% depending on the number of applicants, their ages, and the product type. The new products will accept properties valued from £70,000 with no maximum value cap, with loan sizes up to £1 million (£800k for Heritage Max Plus) that can be taken as either lump sum or drawdown facility.

Brendan Gilligan (pictured), head of products at Pure Retirement, said: “The launch of Heritage Freedom 20 underlines our continued commitment to finding innovative and flexible product solutions for customers who, more than ever, are seeking plans that not only meet their needs now but also in the future. Freedom 20 is designed to strike a balance for customers simultaneously looking for competitive interest rates and higher-than-usual ERC-free repayment opportunities.

“In an increasingly competitive market, we’re aware of the need to offer products with clear benefits to consumers, and we firmly believe our Heritage Freedom range highlights our understanding of consumer needs and dedication to meeting them.”

Chris Flowers, head of intermediary sales, added: “With customers perhaps more finely tuned to their own circumstances and the way they can change rapidly, it’s of no surprise that when it comes to their financial affairs they’re going to be looking for increasingly flexible products that they can interact with and manage effectively as needed as their situation changes.

“Having seen the positive reaction to Freedom 40 last year, we’re massively proud to be expanding the Heritage Freedom range with Freedom 20, giving those who may want to make larger repayments a variety of product options to suit their circumstances.”