At aged 60 the LTV has been raised from 20% to 24%, while at 75 the LTV now stands at 39%, up from 36% previously. For customers older than 85 the maximum LTV remains at 45%.
Dave Harris, managing director at more 2 life, said: “People need more flexible options for retirement income and the option of accessing property wealth as the cornerstone of retirement planning will continue to grow.
“Lifetime mortgages are ideally suited to those who are near or at retirement with repayment shortfalls and low retirement incomes and who wish to remain living in their property.
“The lifetime mortgage market is evolving rapidly and we anticipate increasingly competitive rates and customer product terms to emerge in the next year. The momentum will be supported by falling interest rates and the development of new product types.”
The Interest Choice Plan allows customers to choose the level of interest they repay on loans while fixing their interest rate and gaining access to a lifetime drawdown facility.
Customers can choose to pay all or part of the monthly interest on their loan and choose how much to withdraw, while those who do not take the whole LTV can make further withdrawals.