Since More2Life introduced a sub-6 per cent rate, another lifetime mortgage lender - Pure Retirement - has launched an identical 5.94 per cent rate.
The average lifetime mortgage rate at the beginning of this month was 8.13 per cent, and there were 310 product options on the market, according to Moneyfacts.
Finance expert at Moneyfacts, Rachel Springall, said the equity release market has seen a number of products withdrawn in recent weeks which she hopes will be a temporary measure amid interest rate uncertainty.
Since mid-November, rates on lifetime mortgage products have started to come down, but not be as much as mainstream products, according to brokers.
Moneyfacts will release the most up-to-date interest rate average for lifetime mortgage products on Thursday (December 1), giving an idea of how much the dial has shifted.
ruby.hinchliffe@ft.com
