TMA Club has partnered with insurance provider, LV= to offer its members access to the lender’s Lifetime Mortgage Lump Sum+ and Flexible Lifetime Mortgage products.
Both products being brought onto TMA’s panel offer fixed and defined early repayment charges ending after 10 years. Through LV=’s Lifetime Mortgage Lump Sum+, TMA members will be able to access the only single lump sum product in the market providing rates dependent on age and loan to value.
Advisers will also be able to lend on second and holiday homes via the two products.
There are no interest payment requirements with LV=’s Lifetime Mortgage Lump Sum+ product. In addition, advisers will be able to access LV=’s refreshed underwriting criteria as part of the plan, as well as the following further enhancements:
- Fixed early redemption penalties; years 0-5 at 5%, then years 6-10 at 3%
- No early repayment charge after 10 years or within three years of first life on a joint mortgage either dying or going into long term care
- Guaranteed reserve facility on Flexible Lifetime Mortgage (15 years)
- Sheltered accommodation accepted if over three years old subject to lease conditions
- Downsize protection option once the plan has been running for five years – only for Lifetime Mortgage Lump Sum+
Rob McCoy, senior product & business manager at TMA, said: “As the equity release market grows to meet the changing needs of retirees, we are working to ensure our advisers are fully equipped to cater to those needs.
“It is clear that more customers are seeing equity release as a viable option to boost their finances during retirement – total customers served across the whole market increased by 10% year-on-year between January and March according to the Equity Release Council – and with this being the case, it is paramount that intermediaries are fully supported and provided with the tools they require in order to produce the best possible customer outcomes.
“As later life lending becomes a bigger part of advisers’ portfolios, we will continue to grow and evolve our equity release proposition to ensure our members stay one step ahead of the game.”
Andrew Gilbert, head of life products at LV=, added: “For most homeowners, their property is one of their biggest assets so it’s critical that professional and personalised financial advice is available to anyone looking at releasing equity. We are looking forward to working with TMA to help equip financial advisers with the knowledge and products they need to provide their clients with more choices to support their retirement journey.
“As equity release has moved into the mainstream in recent years, we have seen a number of innovative new products become available to those looking to release cash from their property. Whilst this trend continues, cooperating with TMA will ensure we can help more borrowers who view their property as part of their total retirement fund.”