While this represents the lowest rate, there are limitations on the LTVs available with clients aged between 60 and 69 having a maximum facility of 20% and those aged 70 and over, 30%.With these limitations on LTVs I don’t think we’ll see too many others rushing to cut their rates where they can compete more on LTV. Hodge Equity Release has reacted somewhat to the market movers by reducing its headline rate to 6.48% monthly (6.68% annual) but more noticeably it has also reduced the minimum drawdown amount on its drawdown scheme to 2,000 from 5,000. This offers comfort, in particular to those who may not qualify for the schemes offered by Just Retirement or Prudential. Mortgage Express and New Life Mortgages still hold, as they have for some time, the top spots for LTVs. New Life pips Mortgage Express to the post at many ages, though this comes at a price, with New Life charging a slightly higher interest rate and imposing harsher early repayment charges. Maximum LTV borrowing still comes at a premium, with interest rates almost 1% higher than the likes of Bristol & West and Just Retirement. On the reversions front, Bridgewater reports a positive reaction to its relaunched offering. Its options now provide a parallel product to drawdown lifetime mortgages, allowing guaranteed further advances, and the option to release further portions of the property in stages. This provides a constructive argument for home reversions and may further boost the already increasing popularity of these plans as the latest market indications are that, for the first time in many years, we will see an increase in reversion business over the previous year.
Over the past few weeks there has been yet more jostling for position in the market, with Bristol & West dropping its lifetime rate to 5.79% monthly (5.95% annual).