Pure Retirement had made changes to its Classic range, with the lowest MER on a fixed-rate equity release product it has ever offered, at 2.59%.

The rate applies to its Classic Super Lite product which comes with a £500 arrangement fee.

The Classic range is designed to offer flexibility with customers able to make 12 optional ERC-free repayments per year provided they don’t exceed 10% of the initial amount borrowed in a 12-month period.

Available to clients aged 55-84, customers can also benefit from a free valuation and the option of no arrangement fee.

The range also features an uncapped drawdown facility (subject to maximum LTV) as well as downsizing protection to accommodate customers’ needs should they wish to move to a smaller property (subject to criteria).

Brendan Gilligan (pictured), Pure Retirement’s head of products, said: “With ongoing uncertainty owing to the threat of an economic downturn, Gilt rates have fallen and by extension have allowed rates to drop. With many of our customers concerned about the current news cycle, it’s gratifying to be able to offer a good news story in providing the most cost-effective way for them to be able to access the retirement they desire.

“It follows several rounds of enhancements to our Heritage range, and allows us to underline our commitment to developing and enhancing our product offering to continue meeting our customers’ needs.”