LV= has launched a lifetime mortgage product that rewards clients for making regular interest payments, giving advisers a new later-life lending option
LV= has added a new product to its Lifestyle lifetime mortgage range that discounts the interest rate for clients who commit to regular repayments. The structure gives borrowers greater control over the long-term cost of borrowing.
The Lifetime Mortgage Lump Sum Lifestyle Interest Reward launched on 7 September 2026. It’s available as a lump sum option for homeowners aged 55 and over.
How the interest reward structure works
Clients who commit to paying 25%, 50%, 75% or 100% of their monthly interest receive a discounted rate for the duration of that commitment. The fixed period can run for five, 10 or 15 years. The discount level depends on the repayment commitment, duration and loan-to-value ratio.
Clients can stop payments at any time, but missing three payments within a 12-month period will end the discounted rate for good.
The product joins LV=’s existing Lifestyle Lump Sum and Drawdown options. It is aimed at clients with ongoing income and those nearing the end of a residential interest-only mortgage term. Those wanting to limit interest roll-up while protecting estate value may also be suitable.
What the data says about client priorities
Data from the LV= Wealth and Wellbeing Research Programme points to strong appetite for flexibility. The survey of 4,000 UK adults was conducted by Opinium in May 2026. Almost a third (31%) of respondents said flexibility was important when planning their retirement income.
Home ownership is a key reassurance factor. Fourteen per cent of UK adults said they would feel more confident taking out a lifetime mortgage if it meant retaining ownership of their property. That figure rose to 21% among those open to using housing wealth as a retirement income source.
The leading reassurance factors were portability to another property (16%), borrowing from a recognised provider (15%) and access to downsize protection (15%).
Which clients suit a lifetime mortgage with interest rewards?
Patrick Oldham, LV= equity release proposition director, said the product was built for clients who want control without the rigidity of a retirement interest-only structure.
“Our research shows that consumers value flexibility, security and the ability to remain in control of their home and finances,” Oldham said. “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.
“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.”
Clients unwilling to commit to full monthly repayment can still reduce the long-term cost of borrowing through a discounted rate. That flexibility may also help advisers who are qualified but not yet active in the later-life lending advice market.
The UK equity release market grew 11% in 2025 to £2.57 billion, according to Equity Release Council data. Lenders continue to widen product choice for the over-55s and for the advisers who serve them.
LV= has been expanding its distribution in recent years, including joining Legal & General Mortgage Club’s later-life lending panel to reach a wider pool of advisers.
