The fixed interest rate for lifetime mortgages introduced by intermediaries will be 6.3% (the overall cost for comparison is 6.8% APR).

Norwich Union will also be increasing commission rates for intermediaries who write equity release business by 0.5% across its range of equity release products from 25 July 2005.

Nigel Spencer, head of marketing at Norwich Union Personal Finance, said: “We can pass on a reduction of 40 basis points to customers alongside an enhancement to adviser commissions.”