LV= will launch two equity release products as part of a new funding partnership with Scottish Widows.
The financial services firm says its LV= Lump Sum Lifestyle and Drawdown Lifestyle products will come to market on 7 November, adding that the deals “offer added flexibility for customers considering equity release as a way of accessing capital to help support their financial plans”.
The business says its Lifestyle lifetime mortgages aim to suit customer demand, with inheritance protection included as standard.
It also allows people to ring-fence part of their property value to pass down to family
The company adds that for customers who may want the flexibility to reduce their mortgage balance, its Lifestyle products allow customers to make optional repayments of up to 11% of loans advanced for each of the first eight years, within a fixed early repayment structure.
After eight years, there are no early repayment charges on any repayments made. It points out that the fixed nature of the charges in the first eight years provides customers and advisers with “clarity and transparency” around early repayment charges.
A quarter of people said they would find fixed early repayment charges reassuring as an equity release feature, according to an online poll of 4,000 adults in a survey conducted by data group Opinium in March.
It added that 24% of the study said they would find inheritance protection reassuring
LV= says its partnership with Scottish Widows is “part of a wider strategy to offer more options to equity release advisers and expand LV’s presence in the equity release market”.
LV= chief executive David Hynam says: “Consumer Duty requirements have made it more important than ever to ensure that advisers can access the right products suitable for their client’s individual needs and lifestyles.
Scottish Widows managing director of retirement and longstanding Emma Watkins adds: “We look forward to being a funding partner for LV= as its expanding range of later life mortgages complements our ambition to source high-quality assets, supporting the growth of our annuities business.”
