L&G has introduced rate reductions of between 0.01% and 1.00% for new customers taking out its Optional Payment Lifetime Mortgage.

The product allows homeowners aged 55 and over to release equity from their property while choosing to pay some or all of the monthly interest, helping them manage the overall cost of the loan.

Customers will retain their tailored reduction for the life of the mortgage, including on future drawdowns, provided payments are made during the first 15 years of the loan.

L&G is also giving new joint borrowers greater flexibility over missed interest periods for a period of time following the death of a partner or when a partner moves into long-term care.

Mike Batty, managing director – home finance and product and strategy director – retail retirement at L&G, said: “We’re committed to helping our customers in a way that best suits their circumstances and gives them the space to adjust as those circumstances change.

“We’ve drawn on customer insights and analysed existing offerings across the market to ensure that the latest updates to our OPLM product are innovative, competitive, and offer an appropriate degree of flexibility.”