Responsible Lending has introduced a  lifetime mortgage at 2.78% AER.

The new rate was released in the same week that it switched to desktop valuations and allowed customers to opt for remote legal advice so it can continue to serve customers during the coronavirus lockdown.

It is available both with and without drawdown. The 2.78% AER rate (equivalent to a 2.75% MER or monthly interest rate) is available on a sliding scale of LTVs dependent on age.

For example, a single 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 defined early repayment charges (ERC). Customers can also repay up to 10% of their loan each year without incurring an ERC.

Responsible Lending’s new product is available through Responsible Life.

Keith Haggart, managing director of Responsible Lending, said: “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.”