LV, or Liverpool Victoria are one of the most respected financial companies in the UK today, especially in the north of England and Scotland.
The concept of equity release has been around for more than 25 years, that’s exactly how long LV have been offering this kind of product for. Initially, it wasn’t met with a lot of trust, that’s because as a nation we believe our home is our castle, and we like to own our own homes. Also, it makes sense that once you hit retirement age, you don’t want to do anything that’s going to put your home at risk.
Recently, it’s really started to take off. In excess of 350,000 homeowners have taken the equity release route, which has amounted to over £17 billion in loans. So, by now, it’s really well established and more and more are seriously considering equity release.
If you are in the situation where you need some cash, perhaps because of an emergency, or tough economic times. It might just be that you want to enjoy your retirement or that your pension is not as much as you would have hoped it to be. Whatever the reason, you’re able to secure your home and leverage the equity in it, thanks to lifetime mortgages.
LV is really at the forefront of the equity release industry. They offer flexibility and stability. Applicants take out their lifetime mortgages without having to make any monthly repayments until you have either passed away or moved into long term care.
If you have a partner, a wife or husband, someone who owns the property with you, the equity loan is valid until both property owners have passed away or moved into long term care.
You always own the home. It’s not that you give up ownership and some financial organisation owns it, you own it 100%. In many cases, as with LV, you have the opportunity to even change home and take the equity release with you. You are also able to set up your equity release to include some equity left for inheritance. It’s your home.
When you pass away, it’s still your home but now you (your estate) has an obligation to sell the home, or at least pay back the loan and interest outstanding. To do this, your solicitor (in many cases) will be responsible for selling the house. They will accept the full market value, there are no tricks or pitfalls there. Once the house is sold, the solicitor will repay the loan and the rest of the equity from the home is part of the estate and likely to go as inheritance.
You have complete peace of mind, You can live forever and never have your home taken from you. At Equity Release Scotland we are fully aware just how much life is a struggle for many people in Scotland. The economy, the price of everything. Pensions don’t stretch as far as they used to. After working hard for your working life, paying off your mortgage, you are now able to keep that peace of mind of owning your home whilst accessing the equity in it to be able to live life, help out the family financially and just have the flexibility needed in life.
LV (Liverpool Victoria) are one of the UK’s leading financial service providers, not just for lifetime mortgages and equity release but across the board. They currently employ over 6000 people and have nearly 6 million customers.
LV are a mutual fund. They are setup to reduce the risk of their customers, which means they are perfectly set up to offer equity release products that rely on that security and stability. With over £14 billion in assets they are about as secure as a company can be.
Understandably, it varies depending on a number of different specifics. For example, the property value, your age, the property type, your health. A calculation will be made by the mortgage company what they’d be willing to release depending on your specific circumstances and you are in a better position to make a decision.
You can inform ERS to let them know if you want to leave some equity for inheritance and LV can calculate all the interest. Everything is transparent with LV equity release products.
At Equity Release Scotland, we know how important the specifics are. You want to know details such as interest rates. Very similar to every loan or mortgage you’d take, the interest rate depends on the time you take out the loan and your personal set of circumstances.
As a general rule of thumb, the interest rate will be higher than a traditional mortgage. That’s for two main reasons. The first is that there is an increased delay in receiving repayment from the mortgage lender, in this case, LV.
This is how it would normally work. You want to take a mortgage with LV. They will loan the money from another institution at a lower interest rate, they will make profit on the difference between the 2 rates. The other institution will expect payments on a regular basis. LV won’t receive any money from you until the mortgage finishes and you’ve passed away. That means they are paying out before they receive anything. This is the reason they want higher interest rates. They are losing money first.
The second reason, which has its own benefits too, is that they offer a fixed interest rate. It means you don’t have to worry about fluctuations over time, you know exactly what you’re getting yourself into.
As you should expect with an industry leader, they want to make their lifetime mortgage as flexible as possible. With LV you are able to choose how you take out your equity, in one lump sum or in stages. You are able to move home if your new home meets some basic criteria, meaning you’re tied down to the property you take the lifetime mortgage on. Additionally, you can even pay back the loan early. There will be some early repayment fees, but they are reasonable.
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You have the Right to Remain in your Home for as long as you choose
You will NEVER owe more than the value of your home due to the "no negative equity" guarantee.
You have the freedom to move to another property without financial penalty (subject to provider criteria)