Tipton and Coseley
The mutual has launched two fixed rate mortgages for later life lending, available through intermediaries and direct to customers.
The first is a three-year loan at 3.09 per cent with the second a five-year deal at 3.29 per cent.
Both are available for up to £450,000 at a maximum loan to value (LTV) of 75 per cent, subject to affordability criteria and can be used for home purchases and remortgage.
They have a £499 arrangement fee which can be added to the loan, a free standard valuation and a 10 per cent overpayment facility.
Those remortgaging to The Tipton on these products will also benefit from free standard legal fees or £150 cashback if they choose to use their own solicitor.
Later life lending products are available to anyone aged 55 and over, with no upper age limit as long as affordability assessment is satisfactory.
Director of sales and marketing Cammy Amaira (pictured) said: “The launch of the later life fixed rate products affirms our commitment to enable people to own their home at all stages of life.
“By providing a fixed rate product, those who are approaching retirement, or already retired, can manage their budget around a set monthly payment which they know won’t change.”
Canada Life has made a number of changes to its Capital Select range, including adding a Super Lite loan, introducing cashback across the entire range, and enhanced interest rates and LTVs for some products.
The Super Lite product has a monthly interest rate (MER) of 3.21 per cent and an annualised interest rate (AER) of 3.26 per cent.
The addition of the cashback option means borrowers are eligible to receive a lump sum of three percent of the value of their initial loan, which Canada Life believes will prove valuable help in paying legal and adviser fees.
Canada Life Home Finance head of marketing and communications Alice Watson said: “By adding ways to increase the flexibility in our lifetime mortgages we aim to give customers greater control of how they access the equity tied up in their homes.
“As the profile of retirement income continues to evolve, it’s important that lifetime mortgage products are tailored to meet the needs of the growing and increasingly diverse customer base.
“Continued market innovation has seen the number of later life lending products more than double in the space of a year, but to ensure further market growth, we must continue to put customer needs at the heart of what we do.”
Responsible Lending has launched an equity release loan with an MER of 2.98 per cent.
The lender said this undercut the previous lowest rate of 2.99 per cent announced earlier this month by Age Partnership.
The deal is available with or without drawdown, with a minimum loan amount of £10,000 and fixed and defined early repayment charges (ERC).
Customers can repay up to 10 per cent of their loan each year without incurring an ERC. The completion fee is £500.
The 2.98 per cent rate is available on a sliding scale of LTVs dependent on age. For example, a customer aged 70 could access the rate with an LTV of up to 24 per cent, the lender said.
It is available through the company’s sister broker firm Responsible Life.
Responsible Lending noted the intense rate competition had been sparked by a record number of sales in the bulk annuity sector — an industry that secures predictable, low-risk returns to fund retirement income by investing in lifetime mortgages.
“This has continued to drive lifetime mortgage interest rates down across the board this year,” it said.
Managing director Keith Haggart added: “Equity release customers are spoilt for choice with the range of products on offer and, to top it all off, they are seeing rates fall repeatedly.
“Rates on lifetime mortgages are now at historic lows and that’s partly because of their increased popularity but also the way they attract a lot of interest from those managing investments on behalf of annuity providers, as they seek stable, low-risk, long-term returns.”