Lifetime mortgage lender Pure Retirement has announced new rate of 5.94% MER on its Classic range, the first sub-6% rate for the equity release sector since the disastrous ‘mini-budget’.

The equivalent product reached a high of 6.57% MER in mid-October as all lenders in the sector increased rates or withdrew products amidst the uncertainty of the financial market.

The 5.94%MER rate is available to 55-84 year olds with the maximum LTV dependent on age, and can be sourced via Pure Retirement’s online portal or all major sourcing platforms.

The Classic range also offers a free Energy Performance Certificate to all customers on completion, in addition to the 21-day rate guarantee post-KFI, allowing applicants to secure a rate while they fully consider their options. Customers have the flexibility of making up to 12 optional ERC-free repayments per year, of up to 10% of the initial amount borrowed in a 12-month period.

The introduction of an Underwriting Promise means that each case has a dedicated underwriter, taking full ownership and managing it all the way through from application to offer. As a result, over the last quarter, 68% of lifetime mortgage applications have been processed within two hours, while 98% were dealt with within 24 hours. Additionally, 99% of valuations are now assessed on the day of receipt.

Brendan Gilligan (pictured), Pure’s head of product, said: “It’s safe to say that the mini-budget has caused significant shockwaves which have impacted the equity release market. It’s therefore heartening to see sub-6% rates emerging again, and that Pure Retirement are able to offer consumers a market-leading solution at a time when many will be investigating their long-term financial options. Not only is it vital to offer these product solutions, but also to ensure that service levels deliver efficient application turnaround times to maintain the strength of the market.”