Legal & General has launched a 4.44% AER Premier Flexible lifetime mortgage.

It claims the deal brings the mainstream mortgage and lifetime markets “one step closer together”, representing the first sub-4.5% fixed rate roll-up lifetime mortgage product in the market.

There is also a cut to the product arrangement fee from £4999 to £1999.

The lender has also made reductions on its Flexible and Flexible Plus lifetime mortgage rates, with Flexible falling from 4.99% AER to 4.59% AER and Flexible Plus from 5.35% AER to 4.99% AER.

Bernie Hickman, CEO of Legal & General Home Finance, said: “The introduction of our market-leading sub-4.5% roll-up product represents a big leap forward in delivering on our commitment to offer better value for money when it comes to retirement lending. Whilst representing big savings for borrowers looking to release equity, these reductions are also blurring the lines with the residential mortgage market, making lifetime a mainstream solution for 55+ financial planning.

“At Legal & General, we believe there is a bright future ahead for lifetime mortgages. More and more people are opting to release equity from their homes, whether to fund retirement, pay off an interest-only mortgage or to help the next generation onto the property ladder.

“An estimated £1.4trn of housing equity rests in the hands of the over-55s, but for the market to reach its full potential we must continue to improve consumer value for money and encourage more customers to talk positively about the real benefits of releasing equity for retirement.”