Saga cuts cost of equity release

Saga has slashed the cost of its lifetime mortgages by 0.65 per cent, enabling homeowners to release the equity accumulated in their homes.

The new rate of 6.39 per cent per annum is fixed for the life of the loan, with an APR of 6.7 per cent.

The lifetime mortgage comes with a fee-free flexible draw down facility for further withdrawals.

Saga believes the lifetime mortgage can save customers thousands of pounds in unnecessary interest payments through its flexible draw down facility.

The chief executive of Saga, Andrew Goodsell, explained the need for looking around before opting for any particular product.

"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," he added.

The mortgage allows customers to withdraw exactly the amount they need but still gives them the option of drawing down further funds should they choose at a later date ? without having to pay any further fees.