Responsible Lending has launched a lifetime mortgage with a fixed interest rate of 2.82% APR.
This is available both with and without a drawdown. The rate is on a sliding scale of LTVs dependent on age. There is no upfront fee.
The minimum loan amount is £10,000 and the product has fixed and early repayment charges (ERCs). Customers can repay up to 10% of their loan each year without incurring an ERC.
Keith Haggart, managing director of Responsible Lending, said: “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.”
Darren Cook, finance expert at Moneyfacts, added: “Introducing a very competitive fixed rate to the market must be good news for potential borrowers and brings further rate competition between providers, however, it is essential that the same borrowers find a product that best suits their requirements as well.”