Legal & General Premier Optional Payment Plan
  • Legal & General Premier Optional Payment Interest Only Lifetime Mortgage
  • Rate: 3.75%
    APR: 3.80%
    Incentive: Yes
    Offers: Minimum Loan Size £100,000 | No Arrangement Fee | 10%pa Optional Partial Repayment Option | Inheritance Protection Guarantee | Location based Interest Rate*

Background

Legal and General Home Finance entered the equity release marketplace in early 2015 by acquiring existing lifetime mortgage company New Life Mortgages. This enabled them a quicker root to market with immediate permissions, whilst at the same time obtaining PRA & FCA regulatory approval.

Legal & General Home Finance provide a portfolio of equity release schemes with a range of flexible lifetime mortgage plans and high maximum lump sum plans, all with the control-ability measure of the 10% partial repayment function & drawdown facilities.
They have more equity release plans afoot with ambitious targets to grow the market significantly over the forthcoming years, which all bodes well for an already expanding post-retirement lending market.

 

Eligibility

The L&G Premier OPLM has the lowest equity release interest rate of the interest only range. It has the discipline of a fixed interest repayment option facilitating management of the future balance. It offers a lower maximum release than its Flexible OPLM counterpart, but this Premier plan offers a lower interest rate, thus lower comparable monthly payments.

 

The Legal & General Premier Optional Payment Lifetime Mortgage scheme is specifically aimed at the larger loan end of the equity release marketplace, as the main feature of this bespoke lifetime mortgage scheme is a minimum initial loan size of £100,000.

Therefore, there is no minimum property valuation allocated to this Premier Optional Payment Lifetime Mortgage as long as the loan-to-value ensures the minimum loan of £100,000 is reached. However, a maximum property valuation of £4m usually applies (contact us on 0800 678 5955 if higher).

The location of the property which must be a main residence, shall need to be situated in England, Wales and mainland Scotland. Legal and General Home Finance will only make their calculations based on 85% of the current market valuation. Additionally, should the property be leasehold then the minimum number of years remaining must be at least 185 years.

The L&G Premier Optional Payment Lifetime Mortgage is available on both a single and joint life basis. The minimum age of youngest homeowner starts from age 55, with a typical maximum age of 90. (In certain circumstances an age of 90+ can be acceptable – if so, please contact the team).

The minimum loan for this plan is £100,000 with a maximum release of £2m. For loans greater than £2m, bespoke quotations are available via Equity Release Supermarket. Please call 0800 678 5955 for a personalised Key Facts Illustration.

 

Features

Legal and General’s Premier OPLM Plan is an interest only lifetime mortgage scheme that provides an initial tax-free lump sum cash release for immediate use, with any remaining unused cash being retained in an uncapped cash reserve facility. This is ideal for those looking to control the balance of this equity release mortgage in conjunction with one of the lowest equity release interest rates possible. The minimum withdrawal amount from the cash reserve facility is just £2,000 with no admin charges for any additional drawdown taken.

A generous free unlimited valuation is offered along with a fixed equity release lifetime interest rate on the initial lump sum. Any further withdrawals would be at the interest rate applicable at the time of withdrawal.

As Legal & General are members of the Equity Release Council all their plans come with a no negative equity guarantee. Therefore, upon eventual sale of the property, any beneficiaries cannot be left with a debt to the equity release provider.

 

Options

This Legal and General Premier OPLM enables any homeowner to spend their tax-free cash as they wish, with no need in having to make any repayments. The plan is ideally suited to residential interest-only mortgagors with no repayment strategy and require funds for settlement. However, one feature of the L&G plan is the Optional Payment feature which allows the planholder to make monthly payments of interest only back to L&G by direct debit. These repayments can be anywhere between a minimum of £25pm, upto 100% of the interest charged each monthly by the lender.

This helps manage control the future balance of the lifetime mortgage UK scheme. By choosing to pay 100% of the interest charged will maintain a level balance, whilst opting to pay off a reduced amount will slow down any roll-up of interest. The added benefit of the Premier OPLM plan is that NO proof of income, or affordability checks are required.

A further option for inclusion is the Inheritance Protection feature so the homeowner can secure a fixed percentage of the final sale value of the property. This is important for those who wish to guarantee a percentage of the house value from their inheritance.

*Interest rate is based on properties outside the London & South-East area

 

To obtain further information or to request a quotation on the Legal and General Premier Optional Payment Lifetime Mortgage plan , please contact the Equity Release Supermarket team on 0800 678 5955 today.