Legal & General Home Finance has reduced the minimum drawdown on its lifetime mortgage, in response to the more challenging economic backdrop. 

This minimum withdrawal has been reduced from £2,000 to £1,000, allowing customers to take out smaller sums to top up income requirements. As interest is only charged on drawdown funds, smaller more regular withdrawals can reduce the overall interest charged on these lifetime mortgages. 

L&G says this additional flexibility follows feedback from customers and advisers. The change will be applied to both new and existing products.

It adds that reduction means that customers who have between £1,000 and £2,000 left can access their lifetime mortgage funds as and when they need to. 

Legal & General Home Finance product director Andrew Gilbert says the company regularly reviews and evolves its products in response to changes in the market: “As we continue through challenging and inflationary times, it’s important to help as many people as possible wishing to use their property to meet their retirement needs, in a way that minimises the impact of rolled up interest.”