Responsible Lending launches lowest ever lifetime mortgage rate

The new product is available both with and without drawdown 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%) with no upfront fee.

The minimum loan amount is £10,000 and the product has fixed and early repayment charges. Customers can repay up to 10% of their loan each year without incurring an ERC.

Keith Haggart, managing director of Responsible Lending, commented: “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.”