Savings and retirement specialist LV= is making changes to the flexible repayment option available across its Drawdown+ and Lump Sum+ Lifetime Mortgages.
LV= is reducing the minimum repayment amount to £50 and removing the 12-month waiting period, allowing repayments from day one of the policy.
New Lump Sum+ customers can choose to make an unlimited number of fee free repayments worth up to 10% of the initial loan advance in each policy year.
New Drawdown+ customers also have the option of an unlimited number of repayments worth up to 10% of total loan advances each policy year without incurring ERCs (Early Repayment Charges). This was previously limited to six payments a year with minimum payments of £250.
For Lifetime Mortgage Drawdown+ policies, the ERC charging period is based on the completion date of the original loan, rather than the date of further withdrawals made.
The maximum loan available to Drawdown+ customers has increased from £500,000 to £1.5m.
“Attitudes to equity release are changing as more people recognise it as a way to fund retirement and after listening to advisers, we have made improvements to our early repayment options to be more competitive and flexible to their customer’s requirements.
“By introducing these improvements across our Lifetime Mortgage products, we will be more responsive to customers’ changing circumstances, giving them more freedom and choice to control the interest roll up on their policies.”
LV= Lifetime Mortgage Drawdown+ was awarded a 5-star award in the 2021 Moneyfacts Equity Release Star Ratings.
LV= is 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.
LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited (LVFS) and trading styles of the LV= Group of Companies.Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF. Phone: 01202 292333.