LV= has launched a new platform supporting all its current products and the launch of a new drawdown product – Lifetime Mortgage Drawdown+.
Using the LV= Equity Release Portal, advisers can produce key facts illustrations, submit and track lifetime mortgage applications online and benefit from faster end-to-end times.
Lifetime Mortgage Drawdown + allows customers to take out a minimum initial loan of £10,000 with further ad-hoc drawdown payments available from £1,500 – £70,000.
Withdrawals can be taken out monthly provided they do not exceed the maximum loan value. The minimum property value accepted is £100,000 and the maximum loan is £500,000.
Seven tiers of lending are available: Lite, Standard 1, Standard 2, Standard 3, Max, Platinum and Platinum Plus.
Lending tiers for LV= Lifetime Mortgage Drawdown+
|Borrowing level||AER||MER*||Max. LTV|
|Lifetime Mortgage Drawdown+ Lite||2.68%||2.65%||24|
|Lifetime Mortgage Drawdown+ Standard 1||2.70%||2.67%||27|
|Lifetime Mortgage Drawdown+ Standard 2||2.78%||2.75%||30|
|Lifetime Mortgage Drawdown+ Standard 3||3.00%||2.96%||32|
|Lifetime Mortgage Drawdown+ Max||3.15%||3.11%||35|
|Lifetime Mortgage Drawdown+ Platinum||3.50%||3.45%||36|
|Lifetime Mortgage Drawdown+ Platinum Plus||3.70%||3.64%||37|
The Max LTV listed is based on a 70 year old client using Lifetime Mortgage Drawdown+. The LTV figures available will vary depending on the borrower’s age and increases for each borrowing level.
The Drawdown+ product allows borrowers to make flexible repayments. After the loan has been running for 12 months, customers can make up to six repayments each mortgage year, totalling 10% of the total amount of loan advances without having to pay an early repayment charge (ERC).
LV= has a 10 year fixed ERC charging structure across all its equity release products.
Clive Bolton, managing director of savings and retirement at LV=, said: “The launch of the LV= Lifetime Mortgage Drawdown+ and adviser portal is a significant development. We have listened to feedback from customers and advisers as launching an online portal makes it easier for them to submit and manage equity release applications.
“The drawdown market accounts for more than 60% of new equity release business. Lifetime Mortgage Drawdown+ gives borrowers the freedom to choose how much they drawdown. Allowing customers to make up to six repayments free of early repayment fees makes it easier for them to manage the interest on their equity release loan.”