LV= has launched a new equity release product called LumpSum+ which offers flexible loan-to-values depending on the applicant’s age.
At one end of the scale applicants aged 60 can take out a loan to 25% loan-to-value but by 72 they can take out a 55% LTV loan.
Interest rates stand between 5.3% and 5.6% depending on the initial level of borrowing.
Vanessa Owen, head of retirement solutions products at LV=, said: “Equity release has long been viewed as a solution to support the shortfall in pensions savings, and it’s been a growth area for LV= over the past five years.
“Under the right circumstances, releasing money tied up in a home can provide additional and crucial support in retirement, especially for those who have smaller pension pots, but have enjoyed large gains on their property value. We’re committed to making sure our customers have quality products available to help them, so they can maintain their desired standard of living.”
LV= has closed its existing Lump Sum product after the launch of LumpSum+, however existing customers will still be able to apply for additional borrowing.
LV= said the contraction of the annuities market means the provider has sourced external funding in order to keep rates low.