LV= has launched a new product, Lifetime Mortgage LumpSum+.

It aims to provide additional flexibility to customers, increasing the Loan to Value (LTV) ratio by five percentage points at each age bracket, and will be launched at competitive interest rates, between 5.3% and 5.6% according to the initial level of borrowing.

LV’s existing Lump Sum product will be closed to new business, although current customers will still be able to apply for additional borrowing. The company will also contact all advisers with a current quote or application to offer them the opportunity to switch to LumpSum+

Historically, equity release products have been funded from LV=’s enhanced annuities but it says this business continues to contract following the pensions freedoms. To satisfy the rising demand for equity release, the company has sourced external funding.

Vanessa Owen, head of retirement solutions products at LV=, said: “Equity release has long been viewed as a solution to support the shortfall in pensions savings, and it’s been a growth area for LV= over the past five years. Our new funding agreement has allowed us to extend our product range to reach more customers looking to release equity.

“Under the right circumstances, releasing money tied up in a home can provide additional and crucial support in retirement, especially for those who have smaller pension pots, but have enjoyed large gains on their property value. We’re committed to making sure our customers have quality products available to help them, so they can maintain their desired standard of living.”