Equity release provider Pure Retirement has unveiled its second new product, the ‘Pure Lump Sum Plan’, as part of its new entry into the equity release market, having launched the first in the range earlier this year.

The ‘Pure Lump Sum Plan’ is a lifetime mortgage, available to retirees over the age of 60. Using the plan homeowners can convert some of the equity in their home into a one-off cash advance.

The plan’s loan to value (LTV) ratios begin at 24.5%, rising to 52% at age 85 after which ratios are capped with no upper age limit.

There is a minimum loan amount of £10,000 and is available up to maximum of £600,000 (England) or £250,000 (Wales).

Loans above £45,000 are eligible for a fee free package and there are free valuations on all applications (up to £500,000 property value). Pure Retirement will contribute £600 to clients’ solicitors fees and £500 to adviser fees.

Paul Carter, managing director of Pure Retirement, said: “Having successfully become the first new entrant to the market earlier in the year, and received a hugely positive reception from the industry, we are thrilled to be launching our second innovative new product.

“As we move towards the second half of 2014, it’s clear the equity release market has continued its momentum in which it entered the year. Equity release products have become an important, if not essential, source of retirement finance – and are set to play in even greater role in the years ahead, especially in the context of the sweeping changes announced in this year’s budget.

“We fervently believe that new and innovative products, such as our new lump sum plan, will safeguard the long-term health and growth of the market, by providing new sources of income for retirees.”