LV= improves lifetime mortgage flexible repayment option

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LV= is making changes to the flexible repayment option available across its Drawdown+ and Lump Sum+ lifetime mortgages.

The savings and retirement specialist is reducing the minimum repayment amount to £50 and removing the 12-month waiting period, allowing repayments from day one of the policy.

New Lump Sum+ customers can choose to make an unlimited number of fee free repayments worth up to 10% of the initial loan advance in each policy year.

New Drawdown+ customers also have the option of an unlimited number of repayments worth up to 10% of total loan advances each policy year without incurring ERCs (Early Repayment Charges). This was previously limited to six payments a year with minimum payments of £250.

For Lifetime Mortgage Drawdown+ policies, the ERC charging period is based on the completion date of the original loan, rather than the date of further withdrawals made.

The maximum loan available to Drawdown+ customers has increased from £500,000 to £1.5m.

David Stevens, retirement director at LV=, said: “Attitudes to equity release are changing as more people recognise it as a way to fund retirement and after listening to advisers, we have made improvements to our early repayment options to be more competitive and flexible to their customer’s requirements.

“By introducing these improvements across our Lifetime Mortgage products, we will be more responsive to customers’ changing circumstances, giving them more freedom and choice to control the interest roll up on their policies.”

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