A new equity release lifetime mortgage is open to the over 60s with health or lifestyle issues who need to raise cash to supplement their income.

Specialist retirement solutions provider Partnership has designed the fee-free package that includes a valuation for homeowners with a property worth at least £70,000 who want to raise £25,000 or more in cash.

Interest is faxed at 7.65% with a typical APR of 7.7%.

The firm explains the fee-free package is aimed to help homeowners look seriously at equity release without committing them to fees if they should pull out of the deal before raising any cash.

Partnership includes a ‘no negative equity’ guarantee as standard with the enhanced lifetime mortgage.

The firm claims this allays fears for homeowners with concerns about taking equity release on a property which may become worth less than the value of the mortgage.

Ged Hosty, managing director of equity release at Partnership, said: “The market needs innovation to stimulate growth. We already know that equity release provides a much needed source for income for people in retirement who find themselves without adequate pension provision but have substantial equity in their properties.

“Partnership has refined this product to benefit those with compromised health conditions. The enhanced lifetime mortgage will provide terms for homeowners with qualifying conditions or circumstances and a simplified underwriting process means that a short list of medical questions can be completed online in minutes to confirm eligibility.

Hosty also commented that the cash raised from equity release is for any purpose – not just supplementing pension income.

“During the credit crisis we saw many more people using their equity release to pay off their debts, and this is a trend that is continuing,” he said.

“As many younger people are increasingly facing unprecedented debt and have to meet the costs of funding their university education or getting on the housing ladder, pensioners who can access this income clearly feel they can play a useful role to help their families.”