The 4.99% rate offered by the new product provides customers with a 'substantial saving', according to Legal & General.
For example, borrowers who release a Lifetime Mortgage of £1,000,000 from their £5,000,000 home will make a saving of over £70,000 in interest owed at the end of a 15 year term, compared to the firm's existing Flexible Lifetime Mortgage.
Bernie Hickman, Managing Director, Individual Retirement at Legal & General, said:
“Legal & General’s focus is to continue to drive better value for a broad range of consumers who are considering releasing equity from their homes to improve their retirement for the better. The introduction of Premier Flexible Lifetime Mortgage to the Legal & General range brings the lowest interest rate below the psychologically important 5% level for the first time and, as such marks an important milestone in our commitment to growing the Retirement Lending market in the UK.”
Nigel Waterson, Chairman of the Equity Release Council, commented:
“Legal & General is developing lifetime mortgage offerings at below 5% interest rate and this type of development could be a genuine game-changer for our sector. Product innovation of this sort – together with the industry standards - will further mainstream equity release in 55+ financial planning."
Dean Mirfin, Director at Key Retirement, added:
“Legal & General continue to innovate with interesting products and features which are fuelling better solutions, and better value, for clients. The introduction of a rate of 4.99%, for those looking to release more significant levels of equity from their homes, is great news for advisers and their clients.”
