Retirement solutions provider LV= has reduced the rate of interest on its newly launched Flexible Lifetime Mortgage.

The rate of interest, which is fixed for the lifetime of the loan, has been lowered by 0.2% to 6.75%. The overall cost for comparison is 6.9% APR.

Homeowners between the ages of 60 and 95 can draw down a minimum amount of GBP10,000. Additional withdrawals of at least GBP2,000 can be made, up to the maximum loan-to-value (LTV) amount.

In addition, LV= said that the new equity release product also includes two further property re-valuations throughout the lifetime of the loan, which means that if the property is valued at a higher amount in future, homeowners can take advantage of the house price changes and draw down additional income from their home.

The product also comes with a no negative equity guarantee which means that both the customer and their beneficiaries will never have to pay back more than the value of their home on death or permanent entry into long term care.

Vanessa Owen, head of equity release at LV=, said: Our Flexible Lifetime Mortgage offers homeowners a 15-year guarantee on the maximum loan amount that can be drawn down. This means that whatever happens to interest rates and property prices, homeowners have the peace of mind of knowing that throughout this period they can access the total amount agreed at the outset.