The lifetime mortgage is available to borrowers aged 55 and over who want to release money from their homes, with the option of paying some, or all, of the monthly interest.
New borrowers will receive a tailored rate reduction between 0.01% and 1%. The lower rate will apply for the life of the loan, including future drawdowns, as long as payments are made for the first 15 years.
For joint borrowers of an OPLM loan where a loved one has passed or a partner moves into long-term care, L&G will allow flexibility over missed interest payments for a period of time.
Mike Batty, managing director – home finance, product and strategy director – retail retirement at L&G, said: “We’re committed to helping our customers in a way that best suits their circumstances and gives them the space to adjust as those circumstances change.
“We’ve drawn on customer insights and analysed existing offerings across the market to ensure that the latest updates to our OPLM product are innovative, competitive, and offer an appropriate degree of flexibility.”
