Investment, protection and retirement specialist LV= is extending its range of later life mortgages by launching two new equity release products as part of a new funding partnership with Scottish Widows.
Launching on 7 November, the new LV= Lump Sum Lifestyle and Drawdown Lifestyle products will offer added flexibility for customers considering equity release as a way of accessing capital to help support their financial plans. With features such as Inheritance Protection and competitive Early Repayment Charges (ERCs), advisers will have more choice on how to make equity release work for their client’s unique circumstances.
Data from the LV= Wealth and Wellbeing Research Programme* found that a quarter (25%) of people surveyed said they would find fixed ERCs reassuring as an equity release feature. A similar number (24%) said they would find Inheritance Protection reassuring.
LV= Lifestyle lifetime mortgages are designed to suit customer demand, with Inheritance Protection option included as standard. This enables people to ring-fence part of their property value to pass down to loved ones in the future.
For customers who may want the flexibility to reduce their mortgage balance, the Lifestyle products enable customers to make optional repayments up to 11% of loans advanced for each of the first eight years, within a fixed early repayment structure. After eight years, there are no ERCs charged on any repayments made. The fixed nature of the charges in the first eight years provides customers and advisers with clarity and transparency around ERCs.
The new LV= Lifestyle products are backed with Scottish Widows, part of the Lloyds Banking Group, as a new funding partner. This forms part of a wider strategy to offer more options to equity release advisers and expand LV’s presence in the equity release market.
“Our new Lifestyle range of LV= equity release products are designed to offer more flexibility to customers who wish to unlock their property wealth, helping to support financial choice and confidence in later life.
“Consumer Duty requirements have made it more important than ever to ensure that advisers can access the right products suitable for their client’s individual needs and lifestyles. We are thrilled to support a wider offering to customers by bringing this new product range to the market.
“We’re delighted to have Scottish Widows support us as a new equity release funder, which is a significant enabler to increase our presence in the market. LV= and Scottish Widows share a commitment to the equity release market and a desire to ensure customers can have continued trust and confidence in the sector.”
“We look forward to being a funding partner for LV= as its expanding range of later life mortgages complements our ambition to source high quality assets, supporting the growth of our annuities business.”
LV= is a leading financial mutual and serves over 1.16 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 (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.