Hodge Lifetime is reducing the rate on its lump sum lifetime mortgage by 0.3 per cent, from 6.13 per cent to 5.83 per cent, tomorrow.
The product, which lauched in April, allows customers to pay off up to 10 per cent of their initial loan each year without incurring early repayment charges. Customers can also repay the loan in full without incurring ERCs after five years if they sell the property.
Hodge charges a £595 arrangement fee and will lend between £20,000 and £500,000.
Consumer Credit Counselling Service equity release manager Tom Moloney says: “Many of our clients want to use equity release as part of their retirement planning but only if they can manage the associated long-term cost.
“This reduction in interest rate will allow more clients the affordability to manage this cost and should therefore allow us to engage the client with a more viable solution.”