The rate of interest, which is fixed for the lifetime of the loan, has been lowered by 0.2% to 6.75%. The overall cost for comparison is 6.9% APR.
Homeowners between the ages of 60 and 95 can draw down a minimum amount of £10,000. Additional withdrawals of at least £2,000 can be made, up to the maximum LTV amount.
In addition, the new equity release product also includes two further property re-valuations throughout the lifetime of the loan, which means that if the property is valued at a higher amount in future, homeowners can take advantage of the house price changes and draw down additional income from their home. The product also comes with a No Negative Equity Guarantee which means that both the customer and their beneficiaries will never have to pay back more than the value of their home on death or permanent entry into long term care.
