The rates on the 'Higher Release Lifetime Mortgage' and 'Flexible Lifetime Mortgage' have both been reduced by 60bps and are now 6.09 per cent compounded monthly (previously 6.69 per cent). On the standard lifetime fix, the rate has reduced by 55bps and is now 6.04 per cent also compounded monthly.
The 'Higher Release Lifetime Mortgage' has proved extremely popular since it was launched in 2005. It offers a LTV of 32 per cent for borrowers aged 66, rising to 56 per cent for borrowers aged 90+. As such, this product provides the highest LTVs across the whole of the market for this age range.
New Life launched its 'Flexible Lifetime Mortgage' earlier this month. It was developed in response to an increasing demand for greater flexibility and innovation in lifetime mortgages and offers a numbers of exclusive features:
- It allows borrowers to release capital from the home in which they live, utilising a proportion of the maximum borrowing at the outset, with the option to drawdown a further ‘Flexible Portion’ within ten years of the initial transaction.
- The flexible portion can be repaid and redrawn without early repayment charges.
- Borrowers can choose to drawdown either at the prevailing fixed rate or by opting for a Base Rate tracker capped at 8.99 per cent.
- For the customer whose future plans are uncertain, a 'Reserve Portion' can be considered which, like the 'Flexible Portion', carries a guaranteed interest rate if drawn
- It has the highest LTVs and amongst the lowest interest rate for products of this type, none of which carry the unique features referred to above
Peter Lucas, chief executive at New Life Mortgages, commented: “Our objective is to offer equity release customers real choice. Our lifetime mortgage product range is amongst the widest in the market, and includes unique products and features. These rate reductions across our product range ensure that New Life Mortgages has amongst the most competitive products in the UK Equity Release market.”
