Lifetime Mortgage Drawdown+:


Lifetime Mortgage Drawdown+

We understand having control and choice over income in retirement is important for your clients. Our Lifetime Mortgage Drawdown+ is designed to give flexibility – offering stability and peace of mind.

Our Lifetime Mortgage Drawdown+ product allows your clients to drawdown equity from their property over a period of time. The product provides the flexibility to release further withdrawals from a pre-agreed reserve.

Clients who would be suitable

Typically, LV='s Lifetime Mortgage Drawdown+ is suitable for clients who:
  • Are 60 to 95 years old.
  • Need the option to borrow more later on, from a pre-agreed facility.
  • Need clarity about when the pre-agreed facility will/ will not be paid, simply defined in the terms and conditions.
  • Own a property worth more than £100k which is in England, Wales or Scotland.
  • Require a lump sum of at least £10,000 with the flexibility of future withdrawals.
  • Would like easier access to expert medical advice and care support.
  • Require a guarantee that their estate will never be left with a debt from their lifetime mortgage.
  • Want to know about any early repayment charges upfront.
  • Are looking for downsize protection included for full repayment from year five onwards.
  • Do not intend to repay the loan during their lifetime, and,
  • Would like the certainty of knowing upfront what the charges would be if they did.

Clients who wouldn’t be suitable

LV='s Lifetime Mortgage Drawdown+ is not designed for clients who:
  • Are under 60, or couples where one person is under 60.
  • Want to guarantee they will retain positive equity.
  • Need to maximise the release of equity upfront (where a Lump Sum product could be more suitable).
  • Do not need the flexibility of future withdrawals.
Ian is a recently retired builder. He’s married and lives in greater London – his semi-detached house is worth £510k and it’s mortgage-free. With a former annual income of £19k, Ian is looking to fill a pension shortfall with a regular income boost.

Our Lifetime Drawdown+ would suit Ian: he has inexpensive taste and has good money management, so would welcome a modest income top-up. He’d like to raise some extra cash without needing to move, but wants the option if his situation changes (his home is large, and he may not always need the extra space). Ian’s career has taken its toll on him physically, so added LV= Doctor Services and Care Navigator would be beneficial to him.

Standard lending criteria for clients

We’ll lend to an applicant who:
  • Is aged between 60 and 95.
  • Is a UK resident with an address history covering 36 months, and has a UK or EEA/Swiss citizenship or non-EEA /Swiss citizenship with permanent rights of residency.
  • Is able to prove their identity.
  • Has a property valued between £100,000 and £5m (properties valued £1m or over will require individual underwriting).
  • Is the sole or joint owner of the property if married/civil partnership/co-habiting couple. Standard joint occupancy requires both borrowers to be on the deeds of the property and the lifetime mortgage application.
  • Is low risk on our credit search report.
For more information, please refer to our Lending Policy Guide.
Book School Documents

Lifetime Mortgage client suitability guide

Help personalise your service and match your client’s needs to the most suitable LV= Lifetime Mortgage. Our suitability guide helps identify when equity release is the right solution, finding the most appropriate lifetime mortgage.
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Keeping clients in their home

It’s your client’s legal right to remain in their home, but they need to meet the terms and conditions of the mortgage.

Other people living in the property

Your client’s partner, civil partner or spouse will need to be named on the property deeds and their Lifetime Mortgage Drawdown+ application.

  • If there are friends or family living in the property, or children aged 17 or over they’ll need to sign an occupancy waiver releasing their rights to the property.
  • Those who are incapable of signing a waiver, for example due to disability, may have an occupancy waiver signed by a suitable power of attorney. The attorney must not be an applicant for the loan.
  • Individuals under 17 do not need to sign a waiver of occupancy.
  • If your client has any tenants or lodgers living with them, you'll need to contact us first before an application is submitted..

Moving home

Your client can stay in their home in later life, without needing to downsize.

Your client needs to understand how the terms and conditions of the lifetime mortgage will affect them. They’ll need to:

  • Maintain adequate building insurance.
  • Keep their home maintained – so it remains in the same condition as when the lifetime mortgage was taken out.
  • Get permission from us before they allow another person to live in their home.
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Member of the Equity Release Council

We’re a member of the Equity Release Council – they aim to protect your clients through their code of conduct. We offer additional features and safeguards on our lifetime mortgage products.

More on the Equity Release Council

Contact Phone

Let's talk

0800 028 8974

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