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Catch up with the latest press releases from LV=

LV= announces second equity release rate cut

Press release: 01/02/2012

Equity release specialist LV= today announces it is cutting rates on its lifetime and flexible lifetime mortgages. This is the second cut of the year

The interest rate on LV='s lifetime mortgage for customers up to 80 years old will fall to 6.39% from 6.49% AER from 1 February 2012. With a new rate of 6.49% (from 6.69%) AER for the same age range on its flexible lifetime mortgage (see table below for full list of new rates). This new announcement follows a rate cut across the board by 0.10% on 3 January 2012.

Vanessa Owen, LV= head of equity release said: "We are cutting our equity release rates for the second time in as many months because the underlying cost of funding has fallen, so we are able to pass this saving on to customers. Our new lower rate combined with our product guarantees, such as defined early repayment charges and a guaranteed drawdown credit facility, makes LV=’s equity release products a very strong offering in the market."

Advisers that have submitted an application, but whose client has not yet been offered a lifetime or flexible lifetime mortgage will automatically receive a mortgage offer at the new lower rate.



Notes to editors

(drawdown)

Age band

New rate (AER)

Old rate (AER)

New rate (AER)

Old rate (AER)

60 – 80

6.39%

6.49%

6.49%

6.69%

81 – 85

6.49%

6.59%

6.59%

6.79%

86 – 95

6.59%

6.69%

6.69%

6.89%

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.