LV= simplifies equity release regulations and cuts mortgage rates

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LV= simplifies equity release regulations and cuts mortgage rates

Fri 29th Jul 2011

Equity release specialist LV= has cut the rates on two of its mortgages at the same time as simplifying and reducing the age bands on its equity release products.

Age bands have been reduced by 50 per cent to just three - 60 to 80, 81 to 85 and 86 to 95 - with a reduction in the rates charged in all three age ranges as well.

In terms of their lifetime mortgages, the rate for customers aged up to 80 has been reduced from a high of 6.89 per cent to 6.69 per cent. Likewise, flexible lifetime mortgages in the same age range have seen a reduction from a possible high of 7.09 per cent to 6.89 per cent.

LV='s head of equity release Vanessa Owen said that the lower rates and simplified age bands, in addition to their pre-existing benefits, "make our equity release product a really strong offering".

The changes come following comments earlier this week from Royal London Asset Management (RLAM), which said that despite the global problems of high inflation and tightening monetary policy, it believes the situation will improve in 2011, therefore "removing a big barrier to equity market valuations".

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