LV= has launched a new equity release drawdown product and an adviser portal. 

The new Lifetime Mortgage Drawdown+ deal allows borrowers to take out a minimum initial loan of £10,000 followed by further ad-hoc withdrawals of between £1,500 – £70,000. 

Borrowers can use the product to drawdown a monthly income so long as they do not exceed the maximum loan-to-value, which varies according to the customer’s age. 

The minimum property value is £100,000 and the maximum loan is £500,000.

Advisers can use the new LV= portal to produce key facts illustrations, submit and track lifetime mortgage applications.

There are seven different LTV tiers with rates that vary accordingly.

They range from Lite, which is the lowest tier and would enable a borrower aged 70 to reach a maximum of 24 per cent LTV at an annual rate of 2.68 per cent (or 2.65 per cent monthly equivalent rate).

At the other end of the scale is the Platinum Plus tier, where a borrower aged 70 could reach a maximum of 37 per cent LTV at a rate of 3.7 per cent annually or 3.64 per cent monthly.

The product allows borrowers to make flexible repayments after the first 12 months.

Customers can make up to six repayments each year, totalling 10 per cent of the total loan without having to pay an early repayment charge.

LV= has a 10 year fixed ERC charging structure across all its equity release products, which it says provides clarity and transparency.

Managing director of savings and retirement Clive Bolton says: “The launch of the LV= Lifetime Mortgage Drawdown+ and adviser portal is a significant development. 

“We have listened to feedback from customers and advisers as launching an online portal makes it easier for them to submit and manage equity release applications.

“The drawdown market accounts for more than 60 per cent of new equity release business. 

“Lifetime Mortgage Drawdown+ gives borrowers the freedom to choose how much they drawdown.  

“Allowing customers to make up to six repayments free of early repayment fees makes it easier for them to manage the interest on their equity release loan.”