The rate, part of Pure’s Classic range, is fixed for the life of the borrower. It has a £500 arrangement fee.
The maximum loan to value is 32 per cent with a £10,000 minimum equity requirement. The deal is available to borrowers aged 55 to 84.
The rate matches a More 2 Life deal which has been available for the last 12 months.
The average equity release rate is currently 4.20 per cent, Moneyfacts noted.
Borrowers can make up to 12 repayments a year without incurring an early repayment charge as long as they do not exceed 10 per cent of the initial amount borrowed in a 12 month period.
Early repayment charges are fixed for 15 years on a sliding scale from 10 per cent to one per cent from years one to ten and continue at one per cent for years 11 to 15.
Head of products Brendan Gilligan said: “With ongoing uncertainty owing to the threat of an economic downturn, gilt rates have fallen and by extension have allowed rates to drop.”