Lifetime mortgage provider Responsible Lending has introduced what it’s calling the UK’s ‘lowest-ever fixed rate’ lifetime product.

The rate comes in at 2.45 per cent AER, or 2.42 per cent monthly interest rate.

The new rate is available both with and without drawdown, and available on a sliding scale of LTVs dependent on age. It is available through distributor Responsible Life.

In April, the lender introduced a lifetime mortgage at 2.78 per cent AER, followed by a 2.51 per cent AER product in mid-May.

The latest drop comes amid increased rate competition among providers.

Responsible lending says this is being driven by distress in equity markets, rock bottom central bank interest rates and the continued strengthening of the equity release market.

Responsible Lending managing director Keith Haggart says: “Rates on lifetime mortgages have never been lower than this and they just keep getting better as funders flock to the long-term reliability of these investments.

“This trend is steering lifetime mortgage products into a virtuous circle as attractive rates boost consumer interest, which in turn continues to create downward pressure on the cost of borrowing.”