The LV= Flexible Lifetime Mortgage also offers homeowners a 15-year guarantee on the maximum amount that can be drawn down. This means that whatever happens to interest rates and property prices, homeowners have the peace of mind of knowing that throughout this time they can access the total amount agreed at the outset.
Homeowners between the ages of 60 and 95 can draw down a minimum amount of £10,000; additional withdrawals of at least £2,000 can be made, up to the maximum loan to value amount. The Flexible Lifetime Mortgage rate of interest (currently 6.95%) is fixed for the lifetime of the loan. The overall cost for comparison is 7.1% APR.
Vanessa Owen, head of equity release at LV= said: “This offers consumers a real choice with its flexible drawdown offering. As a member of the Safe Home Income Plans (SHIP) body we have taken particular care to ensure that the flexible drawdown element meets consumer needs. What is fundamentally important for us as a mutual organisation is that it offers homeowners a choice of retirement solutions – they can withdraw the funds they need when they need them – rather than large sums of money at the start, which might not always be necessary or appropriate.”
An initial application fee of £695 applies, which includes the cost of two further property re-valuations throughout the lifetime of the loan. The product also comes with a No Negative Equity Guarantee which means that both the homeowner and their beneficiaries will never have to pay back more than the value of their home on death or permanent entry into long term care.
