Maximising income in retirement has never been a bigger issue than it is today. But for those people with either a holiday home or buy-to-let property, there is now an additional option- products that enable some of the equity in these investment properties to be released.

Most equity release schemes are designed around staying in your home for life. They are designed to work  whatever happens to interest rates or the economy.

Now a company has launched an innovative new product range that will allow many consumers to use their property investment portfolio or UK holiday homes for equity release.

New Life Mortgages was formed with the objective of capitalising on the growing opportunities emerging in the equity release market and in particular to specialise in providing mortgages to the over 60s. Its products are provided exclusively through a select panel of intermediaries.

New Life says it’s New Life Landlord Loan and the New Life Holiday Home Loan are two unique products developed following extensive consultation with intermediaries specialising in investment properties.

These products are ideal for consumers over the age of 60 years who do not want to mortgage the family home but do have investment properties or a second UK holiday home which could be used to release equity.

Key Benefits are said to be:

• No monthly interest or capital payments to make
• Releases equity without the sale of a property which could incur Capital Gains Tax
• Can continue to generate rental income on buy to let property
• Protected by a no negative equity guarantee

In addition, unlike standard lifetime mortgages, these loans do not need to be repaid immediately in the event of the borrower going into long-term care. Therefore, borrowers are able to use the loan itself, or any rental income from their investment properties to fund the costs of long-term care.

Peter Lucas, chief executive of New Life Mortgages commented: "Both the New Life Landlord Loan and Holiday Home Loans are ideal for over 60s who hold investment properties in mainland England and Wales who wish to access funds without mortgaging their family home."

Many financial experts say that trading down provides a better source of revenue than equity release, which of course you won’t have to do with your own home in the above scenario. Most advisers also recommend going through the pros and cons, discussing it with your family, and having a solicitor check the paperwork.