Mortgage lender More 2 Life has cut the rates on its standard equity release plan from 6.25% to 5.99%.
The cut, which came into effect on 16 July, effects both drawdown and lump sum business with loan-to-value (LTV) rates starting at 30% at age 70 and rising to 50% at age 90.
According to the company, its protected equity guarantee adjusts the LTV in line with a customer’s age if they withdraw more money and also protects against falls in property values of up to 5%.
Managing director Jon King said: “The advantages of protected equity guarantees is a major driver for standard equity release products and we’ve cut rates again to increase the focus on them.
“The equity release market is continuing to gain momentum and by offering a diversified product, we are helping to drive this popularity.
“We’ve received an overwhelmingly positive response from this product. Customers are benefiting from the flexibility and favourable terms offered by protected equity and we believe that by altering the product in line with customer demands, we will continue to help grow the equity release market.”
More 2 Life also claimed that it has built a 14% market share of lump sum business through advisers in the three months to 31 March, which it puts down to higher LTV deals available through enhanced equity release.
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