Is this the UK’s lowest ever equity release mortgage rate?
A lifetime mortgage with a fixed interest rate of 2.51% has been launched by Responsible Lending.
The equity release provider said the rate represented a reduction on its previous offer of over a quarter of a percentage point.
The deal is available both with and without drawdown and is available on a sliding scale of loan-to-value tiers, dependent on age.
The minimum loan amount is £10,000 and the product has fixed and defined early repayment charges (ERC), although customers can repay up to 10% of their loan each year without incurring such charges.
Keith Haggart, managing director of Responsible Lending, said: “Rates have never been more competitive and this is testament to the growing appeal of the lifetime mortgage market among consumers and funders.
“We live in uncertain economic times so to be able to bring forward a rate reduction like this in the middle of a pandemic will really test the growing appetite consumers have for these kinds of products.”