The rate is cut from 6.78% and takes place immediately – meaning enhanced plan rates have fallen by 0.28% since the start of April.
more 2 life said that continuing low long-term interest rates have driven the latest cut but that it is also benefiting from efficiency savings made through its own use of online medical underwriting.
Jon King, managing director of more 2 life, said: “We are able to respond quickly to market movements by passing on benefits to customers and intermediaries.
“The second rate cut within just over a month demonstrates that pricing is being driven by the interest rate environment which points towards long-term low rates.”
more 2 life launched enhanced equity release in June 2010 and was the first to offer improved loan to values to customers with medical conditions or lifestyles affecting life expectancy. It also enables customers to protect a level of equity in their property for beneficiaries.
Customers can choose to pay all or part of the monthly interest on their loan and choose how much to withdraw. Those who do not take the whole LTV can make further withdrawals.