Two equity release products have been launched by LV as part of a new funding partnership with Scottish Widows.
Launching November 7, the 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, advisers will have more choice on how to make equity release work for their clients.
LV chief executive, David Hynam, said: “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.”
LV stated that its lifestyle 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.
Additionally, for customers who may want the flexibility to reduce their mortgage balance, the lifestyle products enable customers to make optional repayments up to 11 per cent of loans advanced.
After eight years, there are no ERCs charged on any repayments made.
These new products are backed with Scottish Widows as a new funding partnership and forms part of a wider strategy to offer more options to equity release advisers and expand LV’s presence in the equity release market.
Hynam added: “We’re delighted to have Scottish Widows to 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.”
This announcement follows data from the LV Wealth and Wellbeing research which found that 25 per cent of those surveyed said they would find fixed ERCs reassuring as an equity release feature.
A similar number, 24 per cent, said they would find inheritance protection reassuring.
tom.dunstan@ft.com
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