LV= has reduced the rate of interest on its recently launched Flexible Lifetime Mortgage by 0.2% to 6.75%.
The interest rate, which is fixed for the lifetime of the loan, has been reduced from August 14 2008. Overall cost for comparison will be 6.9% APR.
Homeowners aged between 60 and 95 can draw down a minimum of £10,000 from the equity release product. Additional withdrawals of at least £2,000 can be made up to the maximum Loan To Value (LTV) amount.
The product also includes two further property re-valuations throughout the lifetime of the loan. This allows homeowners to take advantage of house price changes and draw down additional equity if their property is valued at a higher amount in the future, LV= says.
The mortgage also has a ‘no negative equity guarantee’ feature which means the customer and their beneficiaries will not have to pay back more than the value of their home on death or permanent entry into long-term care.
Vanessa Owen, head of equity research at LV=, says: “The current economic climate, along with falling house prices, is influencing the number of people who are choosing to stay in their homes, rather than downsizing.
“Our Flexible Lifetime Mortgage offers homeowners a 15-year guarantee on the maximum loan amount that can be drawn down. This means that whatever happens to interest rates and property prices, homeowners have the peace of mind of knowing that throughout this period they can access the total amount agreed at the outset.”IFAonline
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