The new rates are the lowest ever offered by Norwich Union and follow reductions announced in January.
The fixed interest rate for lifetime mortgages introduced by intermediaries will be 6.68%. The overall cost for comparison is 7.1% APR. The fixed interest rate offered by the Norwich Union Personal Finance Financial Consultants will be 6.87%. The overall cost for comparison is 7.3% APR.
The interest rate shown is the annual rate if interest was applied monthly. Norwich Union applies interest on an annual basis and the yearly cost of the loan is shown as the APR (annual percentage rate).
Mark Kelly, director of Norwich Union Personal Finance, said: "Norwich Union has been the UK's leading provider of lifetime mortgages since 1999. We have reached this position by providing consumers with a competitive range of lifetime mortgage products that suit their needs at the lowest possible interest rate.
"The cost to Norwich Union of raising funds has come down and we are pleased to be able to pass this benefit directly on to consumers by cutting our fixed rate of interest for the second time in 2005, making our new rates the lowest ever offered by Norwich Union."
