Saga lifetime mortgages reduced

Saga is seeking to promote its equity release products with a new reduction in rates.

The lender has reduced the cost of its lifetime mortgages by 0.65 per cent with loans now available at 6.39 per cent, fixed for the life of the loan.

Equity release enables customers to realise some of the equity built up in their homes.

Saga claim that their lifetime mortgage could save customers thousands of pounds in unnecessary interest payments through a flexible draw down facility.

The feature enables borrowers to withdraw sums in accordance with their spending needs with the option of making further draw-downs continuing to be available at no further cost.

An arrangement fee of £495 is applicable while Saga are offering to refund valuation fees up to £280.

Andrew Goodsell, chief executive of Saga, said: "It is important that people consider the entire package on offer when looking at releasing equity from their home.

“A good rate is of course important, however other factors to be taken into consideration are the fees charged and the flexibility of the product, should you need to withdraw further funds at a later date."