LV= is set to expand its later life mortgage offerings by introducing two new equity release products in partnership with Scottish Widows.
The new products, titled LV= Lump Sum Lifestyle and Drawdown Lifestyle, are set to launch on 7th November.
Key features like Inheritance Protection and competitive early repayment charges (ERCs) are included, giving advisers a broader scope to suit their clients’ individual needs.
Recent data from the LV= Wealth and Wellbeing Research Programme showed that 25% of respondents found fixed ERCs reassuring, while 24% said the same for Inheritance Protection.
The LV= Lifestyle lifetime mortgages come with the Inheritance Protection option as standard, allowing customers to safeguard a portion of their property’s value for their loved ones.
For those looking for more flexibility, the Lifestyle products let customers make optional repayments of up to 11% of the loan amount for the first eight years. After this period, no ERCs are applied to any repayments. This clear structure provides both customers and advisers with a transparent understanding of the charges.
The collaboration with Scottish Widows, part of the Lloyds Banking Group, is part of a broader strategy by LV= to strengthen its presence in the equity release market.
David Hynam, chief executive of LV=, said: “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.”
Emma Watkins, managing director of retirement and longstanding at Scottish Widows, added: “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.”
