LV= has announced the launch of 'Lifetime Mortgage Lump Sum Lifestyle Interest Reward', a new addition to its Lifestyle lifetime mortgage range.
Available as a lump sum option, LV’s new product rewards customers who make regular interest payments by offering a discounted interest rate. Customers can access a discounted interest rate by committing to pay 25%, 50%, 75% or 100% of interest for a fixed period of five, 10 or 15 years.
The discount, which is based on the level and duration of the commitment as well as the LTV ratio, remains in place for the duration of the loan provided payments are maintained. Customers retain the flexibility to stop payments at any time but will forfeit the discounted rate if they miss three payments in a 12-month period.
The launch expands LV’s equity release proposition, alongside its existing Lifestyle lump sum and drawdown products, and provides advisers with another option for clients who wish to access housing wealth while managing the impact of interest roll-up.
Customers will also benefit from access to a range of value-added services, including Care Navigator and LV= Doctor Services.
Patrick Oldham, equity release proposition director at LV=, said: "I'm delighted that we have launched our new Lifestyle Interest Reward product to the market, further strengthening our equity release proposition and giving advisers greater choice when supporting clients with their later life lending needs.
“Our research shows that consumers value flexibility, security and the ability to remain in control of their home and finances. This product has been designed with those priorities in mind, rewarding customers who choose to make interest payments while helping them preserve more of their property's value over the long term. Customers will also still benefit from a number of existing product safeguards such as security of tenure and the no negative equity guarantee.
“For advisers, it offers another valuable option for clients who want to access housing wealth without sacrificing flexibility, particularly those looking to manage interest costs and protect more of their estate for future generations."
