LV= has cut the rates on its lifetime and flexible lifetime mortgages.
The equity release provider will also no longer charge a higher rate of interest for loans over £600,000.
The interest rate on LV=’s lifetime mortgage for customers up to 80 years old has dropped to 6.19% AER from 6.39%, with a new rate of 6.39% (from 6.49%) for the same age range on its flexible lifetime mortgage .
| Lifetime mortgage (lump sum) | Flexible lifetime mortgage (drawdown) | |||
| Age band | New rate (AER) as at 03/09/12 | Old rate (AER) | New rate (AER)
as at 03/09/12 |
Old rate (AER) |
| 60 – 80 | 6.19% | 6.39% | 6.39% | 6.49% |
| 81 – 85 | 6.29% | 6.49% | 6.49% | 6.59% |
| 86 – 95 | 6.39% | 6.59% | 6.59% | 6.69% |
“The certainty our equity release products provide advisers and their clients through defined early repayment charges and guaranteed drawdown facility has been well received by advisers,” said Vanessa Owen, LV= head of equity release.
“The lowering of our rates combined with the removal of higher interest rates on high value loans further strengthens our equity release proposition.”
Advisers that have submitted an application, but whose client has not yet been offered a lifetime or flexible lifetime mortgage will automatically receive a mortgage offer at the new lower rate.