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Catch up with the latest press releases from LV=

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LV= cuts Equity Release rates and age bands

Press release: 28/07/2011

Equity release specialist LV= today announced a reduction in the number of age bands applied on its equity release products, and a rate cut on its lifetime and flexible lifetime mortgage.

LV= has simplified both its lump sum and drawdown products by halving the number of age bands to just three: 60-80, 81-85, and 86-95. This simplification also coincides with a reduction in the rates charged for each new age range.

The AER interest rate now charged on LV='s lifetime mortgage for a customer aged up to 80 is 6.69% AER, with a rate of 6.89% AER for the same age range on its flexible lifetime mortgage (see table below for full list of interest rates).

Vanessa Owen, LV= head of equity release said: "The feedback we received from IFAs indicated that customers found the guaranteed features of our equity release products, such as clearly defined early repayment charges, really attractive. But clients felt less comfortable if the interest rate was over 7%. Where possible, we have brought our interest rates below this ‘tipping-point’. I am confident that our new lower rates coupled with simplified age bands and our guaranteed benefits makes our equity release product a really strong offering for advisers."

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 lower rate.

Lifetime mortgage (lump sum)

Flexible lifetime mortgage (drawdown)

Age band

New rate (AER)

Old rate (AER)

New rate (AER)

Old rate (AER)

60 – 80

6.69%

6.79% / 6.84% / 6.89%*

6.89%

7.04 / 7.09%*

81 – 85

6.79%

6.89%

6.99%

7.19%

86 – 95

6.89%

6.99%

7.09%

7.19%

*multiple rates indicate rates charged previously for different age bands, now included within the new age band. If the total loan value is greater than £600,000 a higher rate of interest will apply.



Notes

LV=

LV= and LV= Liverpool Victoria are trademarks of Liverpool Victoria Friendly Society Limited. LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies.

LV= employs around 4,500 people, serves over four million customers and members, and manages around £8.1bn (as at 30 March 2011) on their behalf. We are also the UK's largest friendly society and a leading mutual financial services provider.

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, AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.