Lifetime mortgage provider Responsible Lending has introduced a mortgage interest rate of 2.78% annual equivalent rate (AER).
This rate is available both with and without drawdown, and on a sliding scale of loan-to-value ratios (LTVs) dependent on age.
For example, a single customer aged 70 could access the rate at 24% LTV.
The minimum loan amount is £10,000 and the product has fixed and defined early repayment charges (ERC).
Customers can also repay up to 10% of their loan each year without incurring an ERC.
This development comes at the same time as Responsible Lending switched to desktop valuations and allowed customers to opt for remote legal advice.
Keith Haggart, managing director of Responsible Lending, said: “We are extremely 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.”