"Rates have never been more competitive and this is testament to the growing appeal of the lifetime mortgage market among consumers and funders."
Responsible Lending has introduced a lifetime mortgage rate of 2.51% which is currently the lowest available on the market.
The reduction comes just a month after the lender lowered its rate to 2.78%.
The new rate is available both with and without drawdown, on a sliding scale of LTVs dependent on age.
The minimum loan amount is £10,000 and the product has fixed and defined early repayment charges. Customers can also repay up to 10% of their loan each year without incurring an ERC.
Responsible Lending’s new product is available through its sister company, Responsible Life.
Keith Haggart, managing director of Responsible Lending, commented: “Rates have never been more competitive and this is testament to the growing appeal of the lifetime mortgage market among consumers and funders.
“We live in uncertain economic times so to be able to bring forward a rate reduction like this in the middle of a pandemic will really test the growing appetite consumers have for these kinds of products.”