LV = modifies the terms of life mortgage repayment
LV = has adjusted the repayment options for its “Drawdown +” and “Lump Sum +” lifetime mortgages.
The minimum repayment amount has been lowered to £ 50 and the 12 month waiting period has been removed.
In addition to this, new Forfait + borrowers will be able to make an unlimited number of free repayments of up to 10% of the initial loan advance during each insurance year.
New Drawdown + borrowers will also be able to make an unlimited number of payments without incurring a prepayment charge, instead of the previous six per year with a minimum payment of £ 250.
LV = adds that the ERC period for Lifetime Mortgage Drawdown + policies is based on the date of completion of the original loan, not the date of other withdrawals made.
And the maximum loan amount for Drawdown + borrowers has been increased from £ 500,000 to £ 1.5million.
LV = Director of Retirement David Stevens said: “Attitudes towards freeing up equity are changing as more and more people recognize it as a way to fund their retirement and after listening to advisors we have improved our prepayment options to be more competitive and flexible for their clients. conditions.
“By introducing these enhancements into our lifetime mortgage products, we will be more responsive to changing customer circumstances, giving them more freedom and choice to control the accumulation of interest on their policies. “