LV Equity Release review
This LV review is one in our series of equity release reviews covering all the main providers. These reviews are designed to give you a simple summary of what each company offers, so you can compare the plans available and make a more informed decision on what might be right for you.
With over 5.8 million customers, LV= (formerly known Liverpool Victoria) is a well-known name in the UK. The company has been providing insurance, investment and retirement solutions for many years and began offering equity release in 2002. LV= is regulated by the Financial Conduct Authority and is an Equity Release Council member, so LV’s equity release customers are protected by their rules and principles.
Although LV= offer their own lifetime mortgages, they have chosen to partner with Age Partnership to provide a broader equity release advice service. By coincidence, Age Partnership, a leading independent and award winning broker, is also our choice of our equity release partner. Read our Age partnership review to learn more.
LV= equity release advice service – in summary
The LV equity release service provided by Age Partnership gives independent advice on products and providers from across the whole equity release market including LV=’s own range of lifetime mortgages. You could also get better rates and more competitive fees than those available elsewhere, even directly from the provider.
An Age Partnership advisor will go through all your requirements with you and advise you on whether equity release is a good option for your personal circumstances. This initial advice is free – only if you decide to go ahead will a fee be charged.
For each successful application, Age Partnership pays LV= a fee based on a percentage of the equity released.
LV= lifetime mortgages – in summary
As well as offering the advisory service in association with Age Partnership, LV= also offers two of their own lifetime mortgages, both of which are Defaqto and Moneyfacts 5-star rated:
- LV= lifetime mortgage lump sum – lets you release a lump sum upfront and pay nothing until you die or move into long-term care
- LV= lifetime mortgage drawdown – lets you release an initial lump sum with the option to also draw cash as and when you need it.
Both share the following features:
- Available to homeowners aged 55 and above
- The maximum you can borrow will be based on your age and the value of your property.
- Interest is calculated daily and added to the total amount on a monthly basis.
- The cash you release is tax-free and can be spent as you wish.
- You don't have to make any repayments and can continue living in your home until you die or move into long-term care.
- The ‘no-negative-equity’ guarantee ensures you will never pass on debt to your estate.
- You can choose to protect a percentage of your property value to leave as an inheritance.
- If you wish to pay off your lifetime mortgage early, you may have to pay an early repayment charge.
- The size of the mortgage will continue to grow because the interest roll ups every month.
- inflation may reduce the value of the monthly income you receive over time and taking out a lifetime mortgage might affect your entitlement to means-tested benefits or pension credit.
To apply for an LV= lifetime mortgage, you need to meet these following eligibility criteria, as a minimum:
- You are aged 55 or older
- Own a property worth at least £70,000.
- The equity release property is your main home
- You own the property – if you still have a small mortgage, you will have to use your lifetime mortgage to pay it off.
To find out how equity release providers compare or to see how much cash you could release from your home, use our no-obligation easy-to-use free calculator.
You should always seek professional advice, but please be aware that some advisers focus only on one or two companies’ products, which may not offer the most appropriate solution for your situation. For free and independent advice on equity release schemes from across the whole market, call 0800 133 7380 to speak to a specialist adviser at Age Partnership.
And finally, before you reach a decision, make sure you completely understand the implications of a lifetime mortgage, consider potential alternatives, and discuss your plans with your family.
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