L&G is launching a reduced rate for new customers of its optional payment lifetime mortgage (OPLM) product.
OPLM allows customers aged 55 and over to release money tied up in their home with the option of paying some, or all, of the monthly interest to help them manage the overall cost of the loan.
The latest update means that all new OPLM customers will receive a tailored rate reduction of between 0.01% and 1.00%.
Customers will retain the reduced rate for life, including future drawdowns, if payments are made for the first 15 years of the loan.
Following the passing of a loved one, or a partner moving into long term care, joint borrowers will be given greater flexibility over missed interest periods for a period of time.
Mike Batty, home finance, product and strategy director at L&G, said: “We’re committed to helping our customers in a way that best suits their circumstances and gives them the space to adjust as those circumstances change.
"We’ve drawn on customer insights and analysed existing offerings across the market to ensure that the latest updates to our OPLM product are innovative, competitive, and offer an appropriate degree of flexibility.”
