Legal & General | Flexible Indigo Voluntary Repayment Plan

Flexible Indigo

Type Fixed
Rate 5.28%
APR 5.50%

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Incentives:

Cashback
Free Valuation
Free Application

Offers:

10%pa Optional Partial Repayments
Inheritance Protection Guarantee
3-year No Early Repayment Charge*
Downsizing Protection Feature

Background

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

Legal & General have started life with a range of flexible drawdown lifetime mortgage plans and higher maximum lump sum plans, all with the control-ability measure of the 10% partial repayment function. They have more equity release plans in store 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 Legal & General Flexible Indigo Voluntary Repayment Lifetime Mortgage is specifically designed for those looking for the maximum equity release lump sum available via L&G. The plan is simplistic in design as the Flexible Indigo plan offers an initial single tax-free release of equity. If the maximum release isn't taken, then any unused allowance is saved in a cash reserve facility for future use, if required.

The L&G Flexible Indigo plan differs from the Flexible Navy and Blue in that the size of the Indigo's maximum loan it can produce is higher. As a consequence of offering a higher loan-to-value, the L&G Flexible Indigo voluntary payment plan offers higher interest rates than its Flexible Navy and Blue counterparts.

The minimum property valuation applicable to this Optional Payment Blue Mortgage is £70,000, with a figure of £100,000 for ex-council properties. A maximum valuation outside London is £2m, with properties in London being acceptable upto £4m. Please. Contact us on 0800 802 1051 if valuation is higher.

The location of the property which must be a main residence, needs to be situated in England, Wales or mainland Scotland. For flats & maisonettes - Legal and General will only base their calculations on 85% of the current market valuation. Additionally, should the property be leasehold then the minimum number of years remaining must be at least 175 years.

The L&G Flexible Indigo Lifetime Mortgage is available on both a single and joint life basis. The minimum age of the youngest homeowner starts from age 55, with a typical maximum age of 90. In certain circumstances an age of 90+ can be acceptable - please contact the team if so on Freephone 0800 802 1051.

The minimum loan for this plan is £10,000 with a maximum release of £750,000. For loans greater than £750k,000, bespoke quotations are available via Equity Release Supermarket. Please call Freephone 0800 802 1051 for a personalised Key Facts Illustration.

Features

Legal and General's Flexible Indigo Plan is a voluntary repayment lifetime mortgage scheme. This allows the homeowner to make voluntary repayments of a minimum of £500 back to Legal & General with the main advantage being that NO proof of income is needed. Therefore, for those having difficulty obtaining conventional residential mortgages, voluntary repayment schemes offer a non-verification mortgage alternative.

As a drawdown, the Indigo Plan 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 for access to large cash drawdown amounts for the future, with one of the lowest equity release interest rate 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.

Legal & General include a Downsizing Protection feature on all its plans.

The L&G version of Downsizing Protection means that anyone moving home after 5 years from the plan start date, can repay the loan with no early repayment charge, as long as the property they are moving into does not meet L&G’s lending criteria.

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.

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

Options

This Legal and General Flexible Indigo Lifetime Mortgage enables homeowners to spend their tax-free cash as they wish, with no need in having to make any repayments. However, one feature of the L&G Indigo plan is the Partial Repayment Option which allows the planholder to start making upto 10% repayments of the original amount borrowed each year with no penalty. This helps manage control the future balance of the lifetime mortgage UK scheme, either to reduce the roll-up effect of the interest, pay off the interest only or even reduce the future balance by using the full 10% allowance.

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.

An option with the Flexible Indigo Lifetime Mortgage Plan is the opportunity to take a 2% cashback based on the amount taken. This does have the effect of increasing the equity release interest rate by 0.2%.

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.

The L&G Indigo Plan is available with & without arrangement fee. No arrangement fee option is available until further notice.

*The 3-year no early repayment charge applies to joint life plans where the loan is repaid within 3 years of death or long term care of a partner
**Rate shown includes the standard L&G application fee and no cashback

To obtain further information or to request a quotation on the Legal and General Flexible Indigo Partial Payment Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.

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L&G Flexible Indigo Details (Voluntary Repayment)

Flexible Indigo

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Background

Eligibility

Features

Options

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