Lifetime mortgage provider Responsible Lending has released what it is hailing as the UK’s lowest ever lifetime mortgage fixed interest rate.
Its new rate of 2.82% APR (2.74% MER) beats its own previous market leading rate of 3.02 APR (2.98% MER), which was released in August.
Lifetime mortgage interest rates have been falling throughout the industry, sparked by a record number of sales in the bulk annuity sector.
Responsible Lending’s new rate is available both with and without drawdown. The 2.82% APR rate (equivalent to a 2.74% MER or monthly interest rate) is available on a sliding scale of LTVs dependent on age. For example, a customer aged 70 could access the rate with an LTV of up to 24% (for joint applications the LTV is up to 23%). There is no upfront fee.
The minimum loan amount is £10,000 and the product has fixed and early repayment charges (ERC). Customers can repay up to 10% of their loan each year without incurring an ERC.
Responsible Lending’s new product is available through Responsible Life’s Retirement Mortgage Service.
Keith Haggart, managing director of Responsible Lending, said: “We are extremely pleased to be able to beat our own market leading rate to set a new all-time low for the industry.
“Lifetime mortgages have become hugely popular, and increased interest from investors has inevitably followed.
“Consumers now benefit from an enormous range of products and the most competitive rates the industry has ever seen, cementing the place of lifetime mortgages as a primary option for later life borrowing.”