LV= Flexible Lifetime Mortgage

LV= Flexible Lifetime Mortgage
  • Rate: 6.04%
    APR: 6.30%
    Exclusive: Yes
    Offers: FREE Valuation Offer + Guaranteed 15 Year Drawdown Facility AND 10 Year Fixed Early Repayment Charge

The Flexible Lifetime Mortgage offered by LV= is built with the utmost flexibility in mind and provides homeowners with the ability to release a lump sum up-front while saving additional cash withdrawals for the future, if needed.

Eligibility guidelines for the Flexible Lifetime Mortgage include:

• Aged between 60 and 95
• Property located in Wales, Isle of Wight, Scotland, and mainland England

The LV= Flexible Lifetime Mortgage allows homeowners to release some equity from their home now while reserving the ability to release more in the future if needed. This can be done by withdrawing an initial amount while simultaneously setting up a maximum loan amount from which to withdraw in the future. This cash reserve is then guaranteed for 15 years. LV= are the only equity release company to offer such a guarantee on its drawdown equity release schemes.

There are guidelines when it comes to how much can be borrowed at each interval. The initial lump sum payment must be a minimum loan amount of £10,000. The subsequent withdrawals must be at least £2,000 each and there are no further fees upon drawdown. These future withdrawals will be subject to the equity release interest rate at the time of withdrawal. The homeowner’s age will also be taken into account for each of these subsequent withdrawals.

There are a number of identifying features with the Flexible Lifetime Mortgage offered by LV=. They include:

• No interest repayments and no monthly repayments required.
• Fixed early repayment charges. LV= are the ONLY equity release loan company to have a non-government gilt linked equity release early repayment charge. The penalties for early repayment are 5% in years1-5, then 3% in years 6-10. No penalty exists thereafter.
• No negative equity guarantee. This means that should the total loan amount due exceed the amount for which the property is sold, the estate will not be held in a negative balance.
• Fixed interest rate. The interest rate applied to this product is fixed for the lifetime of the loan. The interest is compounded annually and will be added to the total loan amount. Therefore, at the time of repayment, the amount due will include the initial amount borrowed along with all subsequent withdrawals and the interest accrued on both.
• Provisions can be made for additional people living in the home.

This Flexible Lifetime Mortgage offered by LV= has several unique features and offers a great deal of flexibility for those homeowners who are looking to release a larger one-time lump sum payment but would still like the ability to make future withdrawals as needed. This kind of withdrawal flexibility allows homeowners to better budget and financially plan for the future while also providing some level of stability and security in knowing that future withdrawals can be made, so long as lending criteria is still met.