UK’s lowest equity release mortgage launched
Responsible Lending has launched a lifetime mortgage with an interest rate of 2.78%.
The equity release provider said the new deal is the lowest fixed rate lifetime mortgage available in the UK.
The lender has also made changes that enable it to serve customers during the coronavirus lockdown, including remote valuations and legal advice.
The low rate is available both with and without a drawdown feature, on a sliding scale of loan-to-value (LTV) ratios, dependent on age.
For example, a single customer aged 70 could access the rate with an LTV of up to 24% (for joint applications the LTV is up to 23%).
The minimum loan amount is £10,000 and the product has comes with early repayment charges (ERC), although borrowers can repay up to 10% of their loan each year without incurring a charge.
Keith Haggart, managing director of Responsible Lending, said: “We are pleased to be leading the market, even in these uncertain times.
“The range of customers being served by the lifetime mortgage market is broadening every year and this is helping to keep rates low.
“This is an incredibly attractive rate to be able to offer consumers in the middle of one of the most unexpected economic crises in living memory.”