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LV= announces second equity release rate cut

The interest rate on LV='s lifetime mortgage for customers up to 80 years old will fall to 6.39% from 6.49% AER from 01 February 2012.

With a new rate of 6.49% (from 6.69%) AER for the same age range on its flexible lifetime mortgage. This new announcement follows a rate cut across the board by 0.10% on 3 January 2012.
‘We are cutting our equity release rates for the second time in as many months because the underlying cost of funding has fallen, so we are able to pass this saving on to customers,’ said Vanessa Owen, LV= head of equity release.

‘Our new lower rate combined with our product guarantees, such as defined early repayment charges and a guaranteed drawdown credit facility, makes LV='s equity release products a very strong offering in the market,’ she added.

Advisers that have submitted an application, but whose client has not yet been offered a lifetime or flexible lifetime mortgage will automatically receive a mortgage offer at the new lower rate.

If the total loan value is greater than £600,000 a higher rate of interest will apply.