LV= announces equity release rate cut
Press Release: 4th January 2012
Equity release specialist LV= today announced a rate cut on its lifetime and flexible lifetime mortgages.
The interest rate on LV='s lifetime mortgage for customers up to 80 years old will fall from 6.59% to 6.49% AER from 3 January 2012. With a new rate of 6.69% (from 6.79%) AER for the same age range on its flexible lifetime mortgage (see table below for full list of new rates).
Vanessa Owen, LV= head of equity release said: "IFAs have previously indicated that customers found the guaranteed features of our equity release products, such as clearly defined early repayment charges, really attractive. I am confident that this combined with our new lower rates makes our equity release product an even stronger offering for advisers and their clients."
Advisers that have submitted an application, but whose client has not yet been offered a lifetime or flexible lifetime mortgage will automatically be offered a mortgage at the new rate.
Notes to editors
Lifetime mortgage (lump sum) | Flexible lifetime mortgage (drawdown) | |||
|---|---|---|---|---|
Age band | New rate (AER) | Old rate (AER) | New rate (AER) | Old rate (AER) |
60 - 80 | 6.49% | 6.59% | 6.69% | 6.79% |
81 - 85 | 6.59% | 6.69% | 6.79% | 6.89% |
86 - 95 | 6.69% | 6.79% | 6.89% | 6.99% |
If the total loan value is greater than £600,000 a higher rate of interest will apply.
About LV=
LV= employs 5000 people and serves over five million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.
When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.
We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trades unions.
LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG.
Registered address: County Gates, Bournemouth BH1 2NF www.LV.com.
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