The Flexible Lifetime Mortgage offered by LV= (Liverpool Victoria) is ideal for the homeowner who is looking to release some equity from their home now while also maintaining the ability to borrow more money in the future as needed. With this mortgage, homeowners are given several choices and are able to tailor the product to their individual needs. The homeowner is able to choose how much they want to borrow up-front and then are also able to set a maximum loan size from which they can draw future funds in the future if needed.
In order to use this product, the homeowner must be prepared to borrow an initial amount of at least £10,000. Furthermore, the maximum loan from LV= cannot exceed three times the amount of the initial loan. One of the major factors for LV=’s popularity if the fact their cash reserve facility is the only lifetime mortgage plan guaranteed for 15 years. This guarantee is independent of any outside factors, including the housing economy and interest rates, unlike all other equity release schemes. For withdrawals following the initial loan, the minimum amount that can be borrowed each time is £2,000. The interest rate that applies to each withdrawal is the rate that is offered by the lender at the time of the withdrawal, not at the time of the initial loan.
There are a few unique features to the Flexible Lifetime Mortgage offered by LV=. To start with two valuations of the property are offered to the homeowner at no additional cost when applying for additional borrowing. This includes two free applications to increase the maximum loan that is granted to the homeowner. There are fees applied for any valuations above and beyond the first two.
Any and all borrowing from the cash reserve, following the initial loan release, is subject to the lending criteria that applies at the time of the release from the reserve. This lending criteria can include interest rate and not all future withdrawals from the reserve are guaranteed. That being said, the interest rate that applies to each subsequent withdrawal may very well not be the interest rate that was applied to the original loan amount.
This Flexible Lifetime Mortgage offered by LV= is best for homeowners who are looking to release a portion of their equity up-front but would also like to safeguard the option to release more equity in the future. That cash reserve is available for 15 years which provides additional security for the future should the homeowner need additional funds.
LV=’s equity release plans are available in the UK which includes England (including Isle of Wight), Scotland & Wales (including Anglesey).