0 Fixed rate lifetime mortgages now LESS than 4% By The Bower Team / In Company News, Equity Release A big name lender has reduced its interest rates on drawdown lifetime mortgages for over-60s, now charging as little as 3.71% AER interest rate. This lowest rate equity release product – which is available through Bower – applies to later life homeowners looking to release £250,000 or more. Another low rate equity release plan by the same provider offers a fixed rate of just 3.89% AER for the life of the plan. The product is available for releases of £10,000 or more on properties valued at £100,000+ (or £150,000 for ex-council properties), and has the benefit of no provider arrangement fees. The lowest rate lifetime mortgage deal offering a 3.71% AER for the life of the plan is the lowest fixed rate equity release product currently available, although it comes with an arrangement fee of £1,999. Both equity release plans offer a convenient drawdown facility for future withdrawals if the maximum amount is not taken at the outset. By taking advantage of a drawdown facility, homeowners can ring-fence the total amount of cash available to be withdrawn from their property’s value, taking the money as and when required over time. By doing this, interest will only accrue on the money that is drawn down from the available fund, whilst the rest of it can be left untouched until it is required in the future, if at all. Both low rate lifetime mortgages also feature an inheritance protection option. At no extra cost, homeowners can select to leave an inheritance to their beneficiaries by protecting a percentage of the eventual net sale proceeds of their home. It has been previously suggested that these low rate equity release products could have a place in the care market, as they can allow older borrowers to draw a tax-free lump sum which can be paid directly into the care home of their choice. Geoff Charles, CEO of Bower said: “Rates falling under 4% for fixed rate drawdown products is nothing less than game changing for the equity release industry. This product innovation will hopefully lead to further decreasing rates across the board, bringing them more in line with conventional mortgages. This can only serve to further mainstream equity release for the over-55s.” Of course, equity release is not right for everybody, so Bower recommends homeowners aged 55+ seeking a financial boost should speak to an independent specialist in retirement lending before making a decision. You will be offered a free, no-obligation initial home consultation with your local independent equity release specialist. He or she will take the time to explain everything involved, including how equity release will reduce the value of your estate and how it may affect your entitlement to some means-tested benefits. If you decide to go ahead then we can take care of everything for you, searching the market to find the best lifetime mortgage deal available for your individual needs. Speak to us today to arrange your free, no-obligation initial consultation on 0800 411 8668.