LV= launches interest reward lifetime mortgage
Its Lifetime Mortgage Lump Sum Lifestyle Interest Reward product is available to homeowners aged 55 and over as a lump sum lifetime mortgage.
LV= has launched Lifetime Mortgage Lump Sum Lifestyle Interest Reward as part of its Lifestyle equity release range.
The product is available to homeowners aged 55 and over as a lump sum lifetime mortgage.
Customers can receive a discounted interest rate by agreeing to pay 25%, 50%, 75% or 100% of the interest for five, 10 or 15 years.
The discount depends on the payment level, commitment period and loan-to-value (LTV) ratio.
It remains in place for the life of the loan if payments are maintained.
Customers can stop making payments at any time but will lose the discounted rate if they miss three payments within 12 months.
Research from LV= found that 31% of UK adults considered flexibility important when planning their retirement income.
It also found that 14% would feel reassured about taking out a lifetime mortgage if they retained ownership of their home.
This rose to 21% among people who would consider using housing wealth for retirement income.
Among this group, 16% cited the ability to transfer the mortgage to another property, while 15% selected borrowing from a well-known provider and 15% chose downsizing protection.
Patrick Oldham, equity release proposition director at LV=, 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.”
Oldham added: “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.”
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