New Product - GE Life rates revised.(GE Life and Annuity Assurance Co.)(Brief Article)

Financial Adviser, May, 2005

GE Life is cutting the interest rate on its lifetime mortgage.

The rate on the equity release lifetime mortgage has been cut from 7.19 per cent to 6.69 per cent. The company is also offering AGBP500 cashback with every application on completion of the mortgage. Loan to values range from 13 per cent at age 60 to 58 per cent at 95.

Verdict: Jim Turner, senior adviser for Innes Reid Investments in Chester, said the product was competitive but did not offer as much flexibility as Hodge Life's lifetime mortgage which allows individuals to drawdown any amount up to the maximum loan to value underwritten and only pay interest on that amount.