In addition to the new rate, GE Life is to continue its cash back facility, whereby all customers, irrespective of the size of the loan, or who their financial adviser is, will receive a £500 tax-free cashback on completion of their Equity Release Lifetime Mortgage.
The interest rate on GE Life’s Equity Release Lifetime Mortgage is compounded annually, making the product transparent and easy to understand. To provide the same value to the customer, a monthly compounded product would require a headline rate of 6.08% per annum. Additional features include automatic deduction of the application fee on completion of the loan rather than an upfront customer charge, attractive LTVs (ratio of Loan to Value) for the over 70s, competitive redemption charges and a clear overall fee structure.
Simon Little, Product Manager for GE Life said, “The response to our product, especially from intermediaries, has been particularly good; however we are constantly trying to improve the value of our product for our clients. Since we announced our initial rate cut from 7.19% to 6.69% in May, other providers have followed suit and cut their rates, partly as a result of falling money market rates. Due to this, and to further demonstrate our commitment to the market, we have cut our rates again”.
GE Life’s Equity Release Lifetime Mortgage, which is available solely through financial advisers, features:
- Fixed interest lifetime mortgage with interest compounded annually
- No negative equity guarantee
- Clear fee structure - no hidden costs
- Minimum loan value of £25,000
