The reduced rate is the first sub-6% rate for the equity release sector since the mini budget's mortgage market chaos
Lifetime mortgage lender Pure Retirement has announced a 5.94% monthly equivalent rate (MER) on its classic range – what it says is the first sub-6% rate for the equity release sector since the mini budget.
The 5.94% MER rate is available to 55- to 84-year-olds with the maximum LTV dependent on age - and can be sourced via Pure Retirement’s online portal or all major sourcing platforms.
The lender said an equivalent product reached a high of 6.57% MER in mid-October as all lenders in the sector increased rates or withdrew products amid the uncertainty of the financial market.
“It’s safe to say that the mini budget has caused significant shockwaves which have impacted the equity release market,” Brendan Gilligan (pictured), head of product at Pure Retirement, said. “It’s therefore heartening to see sub-6% rates emerging again, and that Pure Retirement is able to offer consumers a market-leading solution at a time when many will be investigating their long-term financial options.
“Not only is it vital to offer these product solutions, but also to ensure that service levels deliver efficient application turnaround times to maintain the strength of the market.”
Pure Retirement’s classic range also offers a free Energy Performance Certificate to all customers on completion, in addition to the 21-day rate guarantee post-KFI, allowing applicants to secure a rate while they fully consider their options. Customers also have the flexibility of making up to 12 optional ERC-free repayments per year, of up to 10% of the initial amount borrowed in a 12-month period.
