LV= Flexible Lifetime Mortgage
  • LV= Liverpool Victoria
  • Rate: 6.04%
    APR: 6.30%
    Incentive: Yes
    Offers: FREE Valuation Offer | Guaranteed 15 Year Drawdown Facility | 10 Year Fixed Early Repayment Charge

Background

LV= is the brand name of Liverpool Victoria which exists as a mutual for the benefit of its members, not shareholders. Formed in 1843 in Liverpool to meet the financial needs of working class families, LV= have grown significantly by acquiring other mutuals & societies.

LV= offer a suite of equity release plans which include a drawdown lifetime mortgages and lump sum plans which are available on a main residence but also 2nd homes and holiday homes. Traditional in its nature, LV= offer steadfast plans that provide guarantees that most other equity release schemes don’t include. Therefore, if elements of security with regards to repayments or permanence of access to future funds is required, then LV= Equity Release are a company to be considered.

 

Eligibility

The LV= Flexible Lifetime Mortgage Plan offers a competitive interest rate with drawdown facility affording access to a tax-free cash fund in the future. No repayments are required to be repaid back to LV=.

The minimum property valuation applicable on the LV= Flexible Lifetime Mortgage is £70,000 with no upper maximum, however LV= may reduce loan-to-values for properties valued above £1.5m. Please contact us directly on properties over this figure on 0800 678 5955.

For the property to qualify with LV’s underwriting it must be located in England, Wales and Scotland. LV=, again uniquely, can offer their equity release schemes on not only a main residence, but also will consider holiday homes and 2nd homes in the UK. If they do accept such a property, LV= will reduce the standard loan-to-value (LTV) figure by 10%. Therefore, if based on a client’s age the standard LTV was 40%, then on holiday and 2nd homes it would be 30% of the property value.

LV=’s Flexible Lifetime Mortgage is available on both single and joint life basis, with a minimum age of youngest homeowner being 60 with a maximum age of 95 for entry onto their plans.

To start a drawdown equity release loan with LV=, the minimum initial amount that can be taken is £10,000. The total loan (initial lump sum + drawdown facility) can only be a maximum of 3 times the initial loan. Therefore, if £25,000 was taken upfront, then the maximum drawdown facility permitted would be a further £50,000. This can be reviewed again in the future should additional financial needs arise.

 

Features

The LV= Flexible Lifetime Drawdown Mortgage is a drawdown scheme that offers homeowners an overall cash facility from which they can withdraw an initial capital amount for immediate use, with any unused cash element remaining with the lender. No interest is charged on these cash reserve facility funds, only on any capital actually withdrawn.

An LV= drawdown mortgage scheme is suitable for homeowners needing a specific cash lump sum from the outset, but with an option for still having access to a future cash pot in the future. These additional withdrawals can be in as smaller amounts as £2,000 a time and attract NO further administration charges.

The USP for the LV= Flexible Lifetime Mortgage is the 15 year guaranteed cash reserve. Therefore, the maximum equity release loan calculated at inception is guaranteed for 15 years & cannot be withdrawn unlike every other equity release scheme. Thus, if a drawdown facility was of high importance then the LV= plan is a major consideration.

LV= offer Equity Release Supermarket a free valuation upto £500,000, however in certain circumstances this can be discussed further (call 0800 678 5955) if higher. This drawdown lifetime mortgage comes with a fixed lifetime equity release interest rate on the initial lump sum which is charged annually. Future cash withdrawals would attract the interest rate applicable at the time of each withdrawal.

LV= are members of the Equity Release Council, hence their plans incorporate the no-negative equity guarantee. This means that following sale of the property on death or long term care, the beneficiaries cannot be left with a debt owing to the equity release company.

For joint applicants there is an added protection feature for the remaining survivor of the plan. Should one homeowner die or move into care, the surviving partner has the option to repay this lifetime mortgage back to LV= within 3 years of this event with NO penalty.

Early repayment charges are always an important feature of any equity release mortgage. LV= are one of the few companies to offer a fixed early repayment charge strategy. For the 1st 5 years of the loan period, LV= would charge 5% of the capital repaid, the next 5 years it would be 3%, with NO penalty after the 10th year. Therefore, if a specific penalty charge is required then LV=’s Flexible Lifetime Mortgage should be considered.

 

Options

This LV= Flexible Drawdown Mortgage enables any homeowner to spend their tax-free cash as they wish, with no need in having to make any repayments. However, one feature of the LV= equity release mortgage is that LV= will allow partials repayments, albeit restrictively. The minimum repayment amount that can be made is £5,000 with a proviso that the remaining loan outstanding is greater than £10,000. Additionally, any partial repayments are subject to any potential early repayment as outlined above.

Additional borrowing is available should the full cash reserve facility become expired. LV= allow two further revaluations in this regard with no charge for the first two additional borrowing applications.

 

To obtain further information or to request a quotation on the LV= Drawdown Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955 today.