Saga launches monthly drawdown lifetime mortgage product

The Saga regular drawdown lifetime mortgage enables borrowers to set how much money they would like to receive each month, with a minimum of £200, after taking an initial tax-free lump sum of £10,000.

The product is available to people aged 60-80 with a UK property worth at least £150,000.

Research conducted by Saga Personal Finance revealed that 40% admitted their pension pot was not as big as they expected, one in three had not forward planned their finances, whilst a third stated they are concerned about leaving an inheritance to their children.

Unexpected costs affecting 28% of people have also been highlighted as a risk to enjoying retirement, with one in six claiming that they simply had not considered their retirement finances.

Alex Edmans, head of product at Saga Money, commented: “The economic situation over the past decade has left many people on a fixed income feeling the squeeze. Our research has shown that people are increasingly viewing their property as an asset which rightly forms part of their retirement planning.

“Our customers have consistently told us that they want a solution that enables them to stay in the home they love, but to use it as a way of generating additional monthly money. For many that means they can pay their bills or financially support their children, whilst others can go out and socialise with friends a little more often or treat themselves occasionally.

“However, we believe that there needs to be more innovation in the industry to help people make the most of the equity in their homes but in a way that works for them. We are delighted to be challenging the market with the launch of our new regular drawdown lifetime mortgage, which enables homeowners to use the equity in their homes to really make a difference to their lives."