*LV= surveyed 4,000 nationally representative UK adults via an online omnibus conducted by Opinium in March 2023
UK population stats from ONS. Total UK adult population is 52.9m UK adults (aged 18+).
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LV= launches new ‘lifestyle’ range of equity release products
30/10/2023
EQUITY RELEASE
Investment, protection and retirement specialist LV= is extending its range of later life mortgages by launching two new equity release products as part of a new funding partnership with Scottish Widows.
Launching on 7 November, the new LV= Lump Sum Lifestyle and Drawdown Lifestyle products will offer added flexibility for customers considering equity release as a way of accessing capital to help support their financial plans. With features such as Inheritance Protection and competitive Early Repayment Charges (ERCs), advisers will have more choice on how to make equity release work for their client’s unique circumstances.
Data from the LV= Wealth and Wellbeing Research Programme* found that a quarter (25%) of people surveyed said they would find fixed ERCs reassuring as an equity release feature. A similar number (24%) said they would find Inheritance Protection reassuring.
LV= Lifestyle lifetime mortgages are designed to suit customer demand, with Inheritance Protection option included as standard. This enables people to ring-fence part of their property value to pass down to loved ones in the future.
For customers who may want the flexibility to reduce their mortgage balance, the Lifestyle products enable customers to make optional repayments 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 ERCs charged on any repayments made. The fixed nature of the charges in the first eight years provides customers and advisers with clarity and transparency around ERCs.
The new LV= Lifestyle products are backed with Scottish Widows, part of the Lloyds Banking Group, as a new funding partner. This forms part of a wider strategy to offer more options to equity release advisers and expand LV’s presence in the equity release market.
“Our new Lifestyle range of LV= equity release products are designed to offer more flexibility to customers who wish to unlock their property wealth, helping to support financial choice and confidence in later life.
“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. We are thrilled to support a wider offering to customers by bringing this new product range to the market.
“We’re delighted to have Scottish Widows support us as a new equity release funder, which is a significant enabler to increase our presence in the market. LV= and Scottish Widows share a commitment to the equity release market and a desire to ensure customers can have continued trust and confidence in the sector.”
“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. We are thrilled to support a wider offering to customers by bringing this new product range to the market.
“We’re delighted to have Scottish Widows support us as a new equity release funder, which is a significant enabler to increase our presence in the market. LV= and Scottish Widows share a commitment to the equity release market and a desire to ensure customers can have continued trust and confidence in the sector.”
David HynamLV= Chief Executive
“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.”
Emma WatkinsManaging Director of Retirement and Longstanding at Scottish Widows