Legal & General is launching a lifetime mortgage with a 4.99 per cent annual equivalent rate.
The lender’s Premier Flexible product is a drawdown lifetime mortgage that lets borrowers with homes worth more than £533,000 to release some of the wealth stored in their property, subject to a minimum loan amount of £200,000.
The 4.99 per cent rate offered by the new product provides customers with a substantial saving compared with many products currently available in the market.
Bernie Hickman, Managing Director, Individual Retirement at Legal & General individual retirement managing director Bernie Hickman says: “The introduction of Premier Flexible Lifetime Mortgage to the Legal & General range brings the lowest interest rate below the psychologically important 5 per cent level for the first time and, as such marks an important milestone in our commitment to growing the retirement lending market in the UK.”
Equity Release Council chairman Nigel Waterson says: “Legal & General is developing lifetime mortgage offerings at below 5 per cent interest rate and this type of development could be a genuine game-changer for our sector.”