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Pru slashes lifetime mortgage rates

Pru has slashed the interest rate on its flexible lifetime mortgage product offered through intermediaries

It comes down from 6.45 per cent to 6.02 per cent. Pru has also declared that advisors will be paid an additional 450 on top of their commission, even if the customer only draws down the minimum amount.

Pru claims that in some cases a customer can save 7,000 over the life of the loan under the new terms.

Head of product development for lifetime mortgages Keith Haggart says: “The lifetime mortgage market presents a great opportunity for customers and advisers alike, and our priority is to make this opportunity attractive to them.

The rate change obviously does this because it makes our product cheaper. However, it is important to point out that the lifetime mortgage market should not be compared by headline rate alone.

Instead, it should be compared by overall customer value. Flexibility is key to customer value, and in that respect, our product leads the pack.

For someone who doesnt need the maximum loan to value up front, a flexible deal can offer them significant interest savings.”

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