LV= started in 1843 and the company has since evolved to offer life insurance, equity release schemes, and other financially related products. The LV= Flexible Lifetime Mortgage is just one of their equity release products for aging consumers. This mortgage is a drawdown equity release plan.

Features and Benefits
The drawdown lifetime mortgage plan offers an initial lump sum with a cash reserve facility to draw on as needed. Interest accrues onto the initial sum and any subsequent withdrawals rather than the money left in the reserve facility. Eligible consumers are anyone 60 or up to 95. Their home value must be at least £100,000 to qualify.

The initial equity release interest rate is fixed for the lifetime of the plan. However, the interest rate on other withdrawals is set at the time the withdrawal occurs. The rate may differ from the initial rate. The initial release amount must be £10,000. Any additional withdrawals must be £2,000 or more.

LV= also offers their equity release plans to those with 2nd property and holiday homes. There is a reduction in the loan to value awarded if it is on a second home rather than the main home. LV= does allow the lifetime mortgage to transfer to a different property should it be necessary.

The standard loan to value is 20% for those aged 60 and up to 50% for those aged 95.

LV= follows all UK regulations for their financial industry including the no negative equity guarantee. This guarantee ensures no other asset can be taken by the lender to repay any principle and interest that is outstanding after a home sale.

Repayment Options
No repayment is needed during the life of the loan, which is until death or move to long term care. However, this is a flexible drawdown mortgage with an early repayment option. Borrowers can repay a part of the loan with an early repayment charge of 5% in the first 5 years. The next 5 years will lower to 3% early repayment charge. After 10 years there is no early repayment charge.

Special Offers
LV= offers free valuations with a 15 year guaranteed reserve facility.