LV= has launched the Lifestyle Interest Bonus Lump Sum Lifetime Mortgage, a new addition to its Lifetime Mortgage range.
The new LV= product rewards customers who make regular interest payments by offering a discounted interest rate.
Customers can get a discounted interest rate by committing to pay 25%, 50%, 75% or 100% of the interest for a fixed period of five, 10 or 15 years.
The discount, which depends on the level and duration of the commitment as well as the loan-to-value (LTV) ratio, remains in effect for the life of the loan provided payments are maintained.
LV= says customers retain the flexibility to stop payments at any time, but will lose the discounted rate if they miss three payments within a 12-month period.
The launch expands the LV stock launch offering, alongside the existing Lifestyle Lump Sum and Drawdown product.
Additionally, customers will benefit from access to services, including Care Navigator and LV=Doctor Services.
This new product may appeal to customers with ongoing income, those looking to preserve more of their property for beneficiaries, or residential interest-only borrowers looking for a flexible lending solution later on.
Patrick Oldham, Director of Equity Release Offerings, says: “I am delighted that we have launched our new Lifestyle Interest Reward product into the market, strengthening our Equity Release offering and giving advisers greater choice when supporting clients with their lending needs later on.”
“Our research shows that consumers value flexibility, security and the ability to take control of their homes and finances. This product has been designed with these priorities in mind, rewarding customers who choose to make interest payments while helping them preserve more of the value of their property over the long term. Customers will also continue to benefit from a number of existing product guarantees such as a Tenure Guarantee and a No Negative Equity Guarantee.”
“For advisors, it provides another valuable option for clients who want access to residential wealth without sacrificing flexibility, especially those looking to manage interest costs and protect more of their estate for future generations.”
