LV= is cutting rates on its lifetime and flexible lifetime mortgages for the second time this year.

The interest rate on LV=’s lifetime mortgage for customers up to 80 years old is now 6.39%, from 6.49% AER, as of today.

There is a new rate of 6.49% (from 6.69%) AER for the same age range on its flexible lifetime mortgage.

This follows a rate cut across the board by 0.10% on 3 January 2012.

Advisers that have submitted an application, but whose client has not yet been offered a lifetime or flexible lifetime mortgage will automatically receive a mortgage offer at the new lower rate.

Vanessa Owen , LV= head of equity release, said: “We are cutting our equity release rates for the second time in as many months because the underlying cost of funding has fallen