The flexible lifetime mortgage offered by LV= is perfect for the consumer who is looking to release equity from their home both now and possibly again in the future. By using this product, you can borrow a percentage of your property value upfront via a lump sum payment, while also securing the option to withdraw future cash withdrawals as needed.
In order to qualify for the flexible lifetime mortgage with LV=, you must be at least 60 years old but cannot be aged over 90. You also must live within mainland England, Wales, the Isle of Wight, or Scotland. Rates for this product start at at 6.29%, but your exact rate, along with how much you are able to borrow, will depend on your age.
There are a number of unique features associated with LV=’s flexible lifetime mortgage:
– You can borrow a percentage now while also being able to borrow more in the future
– You can secure a maximum amount, or reserve, from which you can draw in the future. This can be done as early as when you first borrow your initial amount.
– The reserve you will be guaranteed for 15 years
– There are no interest repayments
– The amount you can borrow starts as low as £10,000.
– The amount you can borrow in subsequent withdrawals from your reserve start as low as £2,000
– The interest rate for each withdrawal from your reserve will depend on your age at the time of that particular withdrawal.
– There is a no negative equity guarantee
– Early repayment charges are fixed at 5% for the first 5 years, 3% for the next 5 years with no repayment charges after that period
The no negative equity guarantee ensures that this lifetime mortgage product will never leave your beneficiaries with a debt, even if the future value of your home is less than the amount you owe. So, should you go into permanent residential care or pass away, your estate will not be left with any debt.
The interest rate of this lifetime mortgage is fixed for the entire period of the loan. However, should you need additional withdrawals from your reserve, the interest rate on those withdrawals may be different depending on the rates available at the time. This is a great product if you are looking for an ability to borrow some cash now but still reserve the ability to borrow more later if you need to do so.