The interest rate on LV='s lifetime mortgage for customers up to 80 years old will fall from 6.59% to 6.49% AER from 03 January 2012. With a new rate of 6.69% (from 6.79%) AER for the same age range on its flexible lifetime mortgage.
For customers aged 81 to 85 the lifetime mortgage rate will fall from 6.69% to 6.59% and for the same age group its flexible lifetime mortgage rates changes from 6.89% to 6.79%.
The lifetime mortgage rate for customers aged 86 to 95 is cut from 6.79% to 6.69% and the flexibe lifetime mortgage rate from 6.99% to 6.89%.
‘IFAs have previously indicated that customers found the guaranteed features of our equity release products, such as clearly defined early repayment charges, really attractive. I am confident that this combined with our new lower rates makes our equity release product an even stronger offering for advisers and their clients,’ said Vanessa Owen, LV= head of equity release.
Advisers that have submitted an application, but whose client has not yet been offered a lifetime or flexible lifetime mortgage will automatically be offered a mortgage at the new rate. If the total loan value is greater than £600,000 a higher rate of interest will apply.
