Retirement Advantage has launched a range of equity release options aimed at landlords.
Retirement Advantage’s “landlord options” range gives borrowers the choice to pay off the full amount at the end of loan, pay the interest on the loan during their lifetime, or pay off up to 10pc a year without an early repayment charge. Interest rates range between 6.07pc and 6.45pc, depending on which option is chosen.
Landlords will be able to take out loans on more than one property as long as they are worth between £70,000 and £6m. More expensive homes are reviewed on a case-by-case basis.
Currently, property owners can take out equity release plans only on their own residence.
Buy-to-let investors have been increasingly targeted by the former chancellor.
Retirement Advantage have said that tenants would not be forced out of properties early when a property owner dies.
The firm has also launched a similar range of plans for people with second homes that are not rented out.
Equity release schemes, which allow cash to be released from properties which is normally paid back from the sale of the property after the owner’s death, have grown dramatically in popularity in recent years.
More than £2bn was released from homes across Britain in 2016, and Legal & General, the biggest lender, has predicted that the total will pass £3bn this year.