Legal & General has made cuts in interest rates for its lifetime mortgage products.
There is now a AER of 4.80% for its Premier Flexible product. The move brings its Flexible Lifetime product below 5% AER for the first time with a new rate of 4.99% for customers who are interested in a drawdown product to help fund a better retirement.
Legal & General has also increased loan-to-value ratios for its Premier Flexible lifetime mortgage by 2% at all ages, for qualifying lifetime mortgage customers.
| Flexible lifetime mortgage rate reductions: | |||
| Legal & General Product | Previous AER | Reduced AER | |
| Premier Flexible | 4.89% | 4.80% | |
| Flexible | 5.08% | 4.99% | |
| Flexible with 2% Cashback | 5.28% | 5.19% | |
All Legal & General lifetime mortgages offer optional partial repayment features which allow customers to repay up to 10% of the amount borrowed each year without any early repayment charges (other terms and conditions apply). The lifetime mortgages are not subject to affordability assessments.
Bernie Hickman, managing director for individual retirement at Legal & General, said: “These further reductions in our interest rates for lifetime mortgages show Legal & General’s continued commitment to driving better value for consumers in the retirement lending market.
“Lifetime mortgages are becoming a key part of retirement planning for consumers across the country, and for all sorts of reasons too. Recent research by Legal & General has predicted that the Bank of Mum and Dad will be involved in 25% of all property transactions in 2016, but not all of us have the cash at hand to help our loved ones. Instead, more and more people are now looking to lifetime mortgages as a means of funding their children’s, or grandchildren’s property ambitions.
“As an industry, we need to continue driving value for money for consumers, so that more borrowers, and their family members across the country can benefit from the positive impact of accessing the ‘savings you never knew you had’.”