The all-time lowest fixed interest rate for a lifetime mortgage has been launched in the UK by Responsible Lending.
The provider’s new ‘best buy’ rate of 2.82% APR (2.74% MER) beats its own previous market-leading rate of 3.02 APR (2.98% MER), which was released in August.
Responsible Lending noted that lifetime mortgage interest rates have been falling throughout the industry, sparked by a record number of sales in the bulk annuity sector.
With gilt rates falling, those managing investments on behalf of annuity providers have been turning to lifetime mortgages as a stable low-risk investment, the company added. This increased demand for investment opportunities in lifetime mortgages has driven rates down to record lows for consumers.
Responsible Lending’s latest rate is available both with and without drawdown. The 2.82% APR rate is available on a sliding scale of LTVs dependent on age. For example, a customer aged 70 could access the rate with an LTV of up to 24% (for joint applications the LTV is up to 23%).
The minimum loan amount is £10,000 and the product has fixed and early repayment charges, although customers can repay up to 10% of their loan each year without incurring such a charge. The new product is available through Responsible Life’s Retirement Mortgage Service and there is no upfront fee.
Responsible Lending’s managing director, Keith Haggart, said: “We are extremely pleased to be able to beat our own market-leading rate to set a new all-time low for the industry. Lifetime mortgages have become hugely popular, and increased interest from investors has inevitably followed.
“Consumers now benefit from an enormous range of products and the most competitive rates the industry has ever seen, cementing the place of lifetime mortgages as a primary option for later-life borrowing.”
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories