Equity release lender More 2 Life has cut its Capital Choice Plan interest rate from 4.69 per cent to 4.49 per cent.
The lender is also waiving the arrangement fee for applications received before the end of September.
More 2 Life says waiving the fees will save customers £500.
There is also a cashback option that gives clients a further 2 per cent of their loan as a cash sum with a rate of just 4.99 per cent MER for loans over £35,000.
More 2 Life channel marketing director Stuart Wilson says: “It is great to be in a position to reduce rates on our Capital Choice Plan even further, as this decision clearly demonstrates our commitment to putting our customers first.
“The waiver of the arrangement fee will enable more consumers to use our service and allow them to enjoy all the benefits of an equity release deal.”