For lump sum and drawdown products, LV= has introduced three age bands: 60 to 80, 81 to 85 and 86 to 95.
In addition, it has reduced rates for each age range, with lifetime customers aged up to 80 receiving a rate of 6.69% AER and 6.89% AER for flexible lifetime mortgages at the same age range.
Interest rates for 81- to 85-year-olds begin from 6.79%, while those aged 86 to 95 receive rates from 6.89%.
Advisers that have submitted applications, but not received an offer for a lifetime or flexible lifetime mortgage, will automatically be offered the lower rates.
Vanessa Owen, head of equity release at LV=, said: “The feedback we received from IFAs indicated that customers found the guaranteed features of our equity release products, such as clearly defined early repayment charges, really attractive. But clients felt less comfortable if the interest rate was over 7%.
“Where possible, we have brought our interest rates below this tipping-point. I am confident that our new lower rates, coupled with simplified age bands and our guaranteed benefits, make our equity release product a really strong offering for advisers.”
