LV= enhances lifestyle equity release range with the launch of new interest reward product

Investment, protection and retirement specialist LV= has today announced the launch of Lifetime Mortgage Lump Sum Lifestyle Interest Reward, a new addition to its Lifestyle lifetime mortgage range. 

Lifetime mortgages enable homeowners aged 55 and over to unlock some of the value of their property through a loan secured against their home. LV’s new product is designed to give customers greater control over the cost of borrowing and help to preserve more equity in their home, which they still own.

Available as a lump sum option, LV’s new product rewards customers who make regular interest payments by offering a discounted interest rate. Customers can access a discounted interest rate by committing to pay 25%, 50%, 75% or 100% of interest for a fixed period of five, 10 or 15 years. The discount, which is based on the level and duration of the commitment as well as the loan-to-value (LTV) ratio, remains in place for the duration of the loan provided payments are maintained. Customers retain the flexibility to stop payments at any time but will forfeit the discounted rate if they miss three payments in a 12-month period. 

Findings from the LV= Wealth and Wellbeing Research Programme* highlight changing consumer priorities in retirement. Almost a third (31%) of UK adults say flexibility is important when planning their retirement income, reflecting a desire for solutions that can adapt to changing needs and circumstances in later life. With this in mind, Lifetime Mortgage Lump Sum Lifestyle Interest Reward has been designed to give customers greater choice and control over how they manage the cost of borrowing, while helping them preserve more of their housing wealth.

Additionally, LV’s research* also reveals the value consumers place on retaining ownership of their home when considering later-life lending. More than one in ten (14%) UK adults say they would feel reassured about taking out a lifetime mortgage if it meant they could retain ownership of their property, rising to more than two in ten (21%) among those who would consider accessing some of the value in their home as a source of retirement income. Among these consumers, key factors providing reassurance included the ability to transfer a lifetime mortgage to another property (16%), borrowing from a well-known financial services provider (15%) and access to downsize protection (15%).

The launch expands LV’s equity release proposition, alongside its existing Lifestyle Lump Sum and Drawdown products, and provides advisers with another option for clients who wish to access housing wealth while managing the impact of interest roll-up. Making interest payments can help reduce the amount of interest charged that builds up over time, although the loan and any interest charged will reduce the value of the customer’s estate and individual outcomes will depend on personal circumstances and property value. Customers will benefit from access to a range of value-added services, including Care Navigator and LV= Doctor Services. 

This new product may appeal to customers with ongoing income, those looking to preserve more of their estate for beneficiaries, or residential interest-only borrowers seeking a flexible later-life lending solution. 

Patrick Oldham, LV= Equity Release Proposition Director, said:

"I'm delighted that we have launched our new Lifestyle Interest Reward product to the market, further strengthening our equity release proposition and giving advisers greater choice when supporting clients with their later-life lending needs.

“Our research shows that consumers value flexibility, security and the ability to remain in control of their home and finances. This product has been designed with those priorities in mind, rewarding customers who choose to make interest payments while helping them preserve more of their property's value over the long term. Customers will also still benefit from a number of existing product safeguards such as security of tenure and the no negative equity guarantee.

“For advisers, it offers another valuable option for clients who want to access housing wealth without sacrificing flexibility, particularly those looking to manage interest costs and protect more of their estate for future generations."

Notes to Editors

• For UK financial advisers only.
• LV= Doctors Services is provided by Square Health Limited. This service is not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.
• *Unless stated otherwise, the data used in this press release comes from a survey of 4,000 nationally representative UK adults conducted for LV= by Opinium in May 2026 and form part of LV’s Wealth and Wellbeing Research Programme.