Savings and retirement specialist LV= is expanding its presence in the equity release market with the launch of a new platform supporting all its current products and the launch of a new drawdown product – Lifetime Mortgage Drawdown+.
Using the LV= Equity Release Portal, advisers can produce key facts illustrations, submit and track lifetime mortgage applications online and through systems automation benefit from faster end-to-end times to help their customers complete new business.
With increasing demand from advisers and clients for more flexibility, Lifetime Mortgage Drawdown+ allows customers to take out a minimum initial loan of £10,000 with further ad-hoc drawdown payments available from £1,500 - £70,000. Withdrawals can be taken out monthly provided they do not exceed the maximum loan value. The minimum property value accepted is £100,000 and the maximum loan is £500,000.
Seven tiers of lending are available: Lite, Standard 1, Standard 2, Standard 3, Max, Platinum and Platinum Plus.
Lending tiers for LV= Lifetime Mortgage Drawdown+
| Borrowing level | AER* | MER* | Max. LTV |
| Lifetime Mortgage Drawdown+ Lite | 2.68% | 2.65% | 24 |
|
Lifetime Mortgage Drawdown+ Standard 1 |
2.70% |
2.67% | 27 |
| Lifetime Mortgage Drawdown+ Standard 2 | 2.78% | 2.75% | 30 |
| Lifetime Mortgage Drawdown+ Standard 3 | 3.00% | 2.96% | 32 |
| Lifetime Mortgage Drawdown+ Max | 3.15% | 3.11% | 35 |
| Lifetime Mortgage Drawdown+ Platinum | 3.50% | 3.45% | 36 |
| Lifetime Mortgage Drawdown+ Platinum Plus | 3.70% | 3.64% | 37 |
*AER = Annual Equivalent Rate, MER = Monthly Equivalent Rate
The Max LTV listed is based on a 70 year old client using Lifetime Mortgage Drawdown+. The LTV figures available will vary depending on the borrower’s age and increases for each borrowing level.
The Drawdown+ product allows borrowers to make flexible repayments. After the loan has been running for 12 months, customers can make up to six repayments each mortgage year, totalling 10% of the total amount of loan advances without having to pay an early repayment charge (ERC).
LV= has a 10 year fixed ERC charging structure across all its equity release products. The fixed nature of the charges provides customers and advisers with more clarity and transparency around ERCs.
Recent LV= research found that over two-thirds of advisers (70%) encountered barriers when advising clients to take out an equity release mortgage. The biggest barrier experienced was deciding whether equity release is suited to their clients’ needs (26%), followed by explaining the complexity of equity release to clients (21%). Providing more flexible options such as withdrawing smaller amounts via drawdown or allowing customers to reduce the amount of rolling interest would be welcomed by those considering a lifetime mortgage.
Clive Bolton, Managing Director of Savings and Retirement at LV=, said:
“The launch of the LV= Lifetime Mortgage Drawdown+ and adviser portal is a significant development. We have listened to feedback from customers and advisers as launching an online portal makes it easier for them to submit and manage equity release applications.
“The drawdown market accounts for more than 60 per cent of new equity release business. Lifetime Mortgage Drawdown+ gives borrowers the freedom to choose how much they drawdown. Allowing customers to make up to six repayments free of early repayment fees makes it easier for them to manage the interest on their equity release loan.
” LV= Lifetime Mortgage Drawdown+ has achieved a 5 Star Rating from Defaqto and Moneyfacts for 2020.
For further information please contact:
- Contact our press office
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About LV=
LV= is a leading financial mutual and serves over 1.3 million members with a range of financial products. 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.LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria 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.