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Catch up with the latest press releases from LV=

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FLM Launch Trade

Press release: 30/06/2008


  • Homeowners can draw down the funds they need, when they need it
  • Maximum loan amount is guaranteed for 15 years
  • Includes a No Negative Equity Guarantee

Retirement specialist LV= has today launched a new equity release product - Flexible Lifetime Mortgage – that allows homeowners to draw down funds from the equity in their home when they need to.

The LV= Flexible Lifetime Mortgage also offers homeowners a 15-year guarantee on the maximum amount that can be drawn down. This means that whatever happens to interest rates and property prices, homeowners have the peace of mind of knowing that throughout this time they can access the total amount agreed at the outset.

Homeowners between the ages of 60 and 95 can draw down a minimum amount of £10,000, making the LV= Flexible Lifetime Mortgage one of the most adaptable options on the market. Additional withdrawals of at least £2,000 can be made, up to the maximum Loan To Value (LTV) amount.

Vanessa Owen, Head of Equity Release at LV= said: "This is an exciting addition to the lifetime mortgage market and offers consumers a real choice with its flexible drawdown offering. As a member of the Safe Home Income Plans (SHIP) body we have taken particular care to ensure that the flexible drawdown element meets consumer needs. What is fundamentally important for us as a mutual organisation is that it offers homeowners a choice of retirement solutions – they can withdraw the funds they need when they need them – rather than large sums of money at the start, which might not always be necessary or appropriate."

The Flexible Lifetime Mortgage rate of interest (currently 6.95%) is fixed for the lifetime of the loan. The overall cost for comparison is 7.1% APR.
As an example, a couple aged 70 and 75 years respectively living in a property valued £325,000 would be able to take a starting loan of £15,000 for example to update their kitchen and top up their granddaughter's deposit for a flat. They could at the same time agree a maximum loan giving them access to a further £30,000 which they can draw on any time allowing them to enjoy a lifestyle which would not be possible if they had to rely on their pension.

An initial application fee of £695 applies, which includes the cost of two further property re-valuations throughout the lifetime of the loan. The product also comes with a No Negative Equity Guarantee which means that both the homeowner and their beneficiaries will never have to pay back more than the value of their home on death or permanent entry into long term care.

Vanessa Owen concluded: "As an expert retirement solutions provider, and part of an insurance, investment and pensions group noted for its financial strength and fund management expertise, we have been able to enhance both the options and flexibility available to consumers facing or in retirement with this lifetime mortgage offering a drawdown facility. And with our heritage spanning some 160 years, we are certainly a provider that consumers will be able to turn to again and again during their retirement years."

This new flexible drawdown product from LV= complements the existing Lifetime Mortgage product that offers a lump sum option, which allows homeowners to borrow a percentage of their property value as a single lump sum.

The LV= flexible retirement solutions business, launched in January 2008 following the successful acquisition of the new business operations of Tomorrow (formerly GE Life), offers a range of capital and income retirement planning products, offering a brighter future for those who are planning, or already in, retirement.

For more information about the range of retirement products and solutions available, as well as our award-winning protection range, financial advisers can visit: www.lvadviser.co.uk .


LV= and LV= Liverpool Victoria are registered trade marks of Liverpool Victoria Friendly Society Limited and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. The new LV= brand identity was launched in March 2007.

LV= employs more than 2,000, serves more than 2.5 million customers and members, and manages more than £8 billion on their behalf. We are also the UK's largest friendly society (Association of Friendly Societies Key Statistics 2007. Total net assets) and a leading mutual financial services provider.

LV= is a member of Safe Home Income Plans (SHIP) and the Council of Mortgage Lenders (CML).

Liverpool Victoria Friendly Society Limited (LVFS) is authorised and regulated by the Financial Services Authority and entered on the Financial Services Authority Register, No. 110035. LVFS is a member of the ABI, AFS and ILAG. Registered address: County Gates, Bournemouth, BH1 2NF.

The Flexible Lifetime Mortgage is offered and administered by LV Equity Release Limited (Registered in England no. 1951289). Authorised and regulated by the Financial Services Authority, register No. 306287. Registered address: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333.