LV= enhances lifetime mortgage products

Retirement specialist LV= has further enhanced its range of lifetime mortgage products by adopting an age-banded system to calculate interest rates.

The move to more tailored rates means that we are able to offer more attractive terms to many lifetime mortgage customers.

The Flexible Lifetime Mortgage rates now start at 6.29% for homeowners aged between 60 and 65 years, a decrease of 0.40%. For this age range the overall cost for comparison is now 6.40% APR, down from 6.90% APR previously. The new rates remain fixed for the lifetime of the loan, meaning that customers are set to save a considerable sum of money over the loan period.

Vanessa Owen, Head of Equity Release at LV= commented: "It is a great opportunity to start 2009 through making our Lifetime Mortgage products even more attractive for both customers and financial advisers. We understand that the current economic downturn, along with falling house prices, is influencing the increasing number of older people choosing to stay in their homes longer, as opposed to downsizing into a smaller property. For those who consider equity release a viable solution to help maintain a comfortable lifestyle in retirement and fulfil their aspirations, our new age-banded interest rates will help these homeowners get some of the best deals on the market."