Responsible Lending has launched a lifetime mortgage deal starting from 2.78 per cent, which it says is the lowest rate currently offered in the market.

The LTV at which the rate is available is on a sliding scale depending on age, so a single borrower aged 70 can borrow up to 24 per cent LTV, but for a younger borrower aged 60 it would be capped at 12 per cent.

The lender has this week moved to offering desktop valuations and is able to carry out legal work remotely.

The new deal is available with or without drawdown.

The minimum loan amount is £10,000 and the product has fixed and defined early repayment charges. 

Customers can also repay up to 10 per cent of their loan each year without incurring an ERC.

Managing director Keith Haggart says: “We are extremely pleased to be leading the market, even in these uncertain times. 

“The range of customers being served by the lifetime mortgage market is broadening every year and this is helping to keep rates low. 

“This is an incredibly attractive rate to be able to offer consumers in the middle of one of the most unexpected economic crises in living memory.”