Liverpool Victoria (LV=) equity release review - Finder UK

Liverpool Victoria (LV=) equity release review

Discover the pros and cons of Liverpool Victoria equity release products with our in-depth review.

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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Liverpool Victoria is one of the UK’s largest insurance companies. It also offers a range of retirement products, including lifetime mortgages.

What equity release products are on offer?

Liverpool Victoria offers two lifetime mortgage products for those looking to release equity from their home.

  • Lifetime Mortgage Lump Sum+. Release a lump sum of money secured against the value of your property.
  • Lifetime Mortgage Drawdown+. Release a lump sum of money secured against the value of your property, with the option to make extra withdrawals from a pre-agreed reserve fund.

How does it work?

A lifetime mortgage is a loan secured against your home, with no requirement to make any repayments until you die or go into long-term care.

You retain 100% ownership of your home and can remain living there for as long as you wish.

Liverpool Victoria allows you to take your loan as one lump sum, or as several payments over a longer period.

Either way, as you’re not making any repayments on the loan, the interest can compound quickly. You’ll be required to consult with a financial adviser before taking out a lifetime mortgage. The negative equity guarantee means you won’t owe more than the value of your property.

You can borrow between £10,000 and £1.5 million with Liverpool Victoria, although the maximum loan size and interest rate offered will depend on the LTV, your age and the value of your property. The interest rate is fixed for the entire duration of the loan.

Most lifetime mortgages levy a huge early repayment charge (ERC) on customers hoping to pay back their loan before they vacate their home.

However, Liverpool Victoria allows you to pay up to 10% of the original advance per year, without any charge. You can also make early repayments without charge 10 years after the loan begins, or within three years of a joint applicant dying or moving into long-term care.

On top of that, you’ll be able to downsize without facing an ERC, provided it has been at least five years since you took out the loan. The maximum ERC you’ll face is 5% of the original amount borrowed.

With a Lifetime Mortgage Drawdown+ product, the maximum you can borrow is £500,000. This loan will be made of an initial lump sum, and a reserve fund you can withdraw from no more than once a month. Withdrawals between £1,500 and £70,000 are permitted. The interest rate offered on additional withdrawals may differ from the rate on the initial lump sum, depending on the financial climate.

    Is Liverpool Victoria (LV=) equity release safe?

    The main danger of lifetime mortgages is the speed at which your interest compounds. In many cases, you may find there’s little left to leave to your heirs.

    However, Liverpool Victoria offers you plenty of opportunities to pay back the loan early without facing an ERC.

    Whatever happens, there is no danger of you falling into negative equity.

    Liverpool Victoria is one of the oldest and most reputable financial services companies in the UK. You’ll be required to take financial advice before you’re permitted to take out a lifetime mortgage.

    Eligibility criteria

    • Youngest applicant must be aged between 60 and 95.
    • Your property must be valued between £100,000 and £5 million.
    • You must be a UK resident with a property in England (excluding the Isle of Wight), Wales or Scotland.

    How to apply

    Download an application form from lv.com, print it, fill it out and send it to Equity Release New Business Team LV=, Pease House, Tilehouse Street, Hitchin, SG5 2DX.

    Pros and cons

    Pros

    • Experienced reputable lender.
    • You can borrow up to £1.5 million, and secure your loan against properties worth up to £5 million.
    • There are plenty of opportunities to make early repayments without paying a fee.

    Cons

    • The interest rate on additional withdrawals could change.
    • Interest can compound quickly, meaning your estate can quickly diminish.

    Our verdict

    Liverpool Victoria has high lending limits and is particularly flexible when it comes to waiving an Early Repayment Charge.

    If these features are likely to benefit you, Liverpool Victoria could be a lender worth considering for your lifetime mortgage.

    Frequently asked questions

    To understand the features and risks of lifetime mortgages, ask for a personalised illustration from a lifetime mortgage company. Check that this type of mortgage is suitable for your needs if you plan to move or sell your home or you want your family to inherit it. If you're not certain, seek independent advice. Your home may be repossessed if you do not keep up repayments on your mortgage.

    We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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