LV= offers new rates on lifetime mortgages

| January 20, 2009 | 0 Comments
LV= offers new rates on lifetime mortgages

LV= (formerly Liverpool Victoria) has been working on its range of lifetime mortgages and introduced age-banded interest rates.

The mutual is confident that the changes will provide its lifetime mortgage customers with a more competitive product.

Interest rates start from 6.29% for a flexible lifetime mortgage for a homeowner aged between 60 and 65, increasing to 7% for those aged 86 and over.

Rates remain fixed for the lifetime of the loan.

LV=’s head of equity release, Vanessa Owen, points out that the economic downturn along with falling house prices mean the number of older people choosing to stay in their homes, as opposed to downsizing, is on the rise.

She believes that the new age-branded rates will be of help to those who consider equity release a viable solution to maintaining a comfortable lifestyle.

Safe Home Income Plans (SHIP), the body that represents 90% of the UK’s equity release providers, recently reported that nine out of 10 equity release firms expect new business volumes to increase during 2009, expanding the market to £1.4 billion by the end of the year.

Over two thirds of SHIP members also expect growth to continue into 2010, when the total value of UK equity release business could hit £1.7 billion.

Falling interest rates on savings accounts are likely to be a key driver to growth.

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