LV= has launched a new mortgage which allows homeowners to draw equity from their home as and when they need, with a 15 year guarantee on the amount agreed.
Some people use the value which they have built up in their homes to give themselves a more comfortable retirement, and the new Flexible Lifetime Mortgage allows them to do this on a guaranteed basis – they will have access to the full amount agreed that they would take out of their home for 15 years, despite what happens to interest rates or property prices.
Homeowners who are aged 60-90 years old can use the equity release
scheme to draw a minimum of £10,000 from their home, and further withdrawals of at least £2,000 can be made, up to the maximum LTV (loan to value) of the property.
"This is an exciting addition to the lifetime mortgage market and offers consumers a real choice with its flexible drawdown offering." said Vanessa Owen, head of equity release at LV=.
"As a member of the Safe Home Income Plans (SHIP) body we have taken particular care to ensure that the flexible drawdown element meets consumer needs. What is fundamentally important for us as a mutual organisation is that it offers homeowners a choice of retirement solutions – they can withdraw the funds they need when they need them – rather than large sums of money at the start, which might not always be necessary or appropriate."
deal also comes with a No Negative Equity Guarantee, so that upon death or entry into full time care, the homeowners, or their beneficiaries, will never be left owing more than the value of their home.
Vanessa Owen concluded: "As an expert retirement solutions provider, and part of an insurance, investment and pensions group noted for its financial strength and fund management expertise, we have been able to enhance both the options and flexibility available to consumers facing or in retirement with this lifetime mortgage
offering a drawdown facility."
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