Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

LV= Launches Lifetime Mortgage with Interest Reward Option

LV= has expanded its equity release range with the introduction of the Lifetime Mortgage Lump Sum Lifestyle Interest Reward. The new product offers reduced interest rates to borrowers who commit to making regular interest payments.

The product is available on a lump sum basis. Borrowers can choose to pay 25%, 50%, 75%, or 100% of the monthly interest over a fixed term of five, 10, or 15 years. The level of interest rate discount depends on the proportion of interest paid, the length of the commitment, and the loan-to-value (LTV) ratio.

Borrowers have the flexibility to stop making payments at any time. However, the preferential interest rate will be withdrawn if three payments are missed within a 12-month period.

LV= stated that the launch reflects growing demand for flexibility in later life financial planning. Research by LV= found that 31% of UK adults consider flexibility important when planning retirement income.

According to LV=, the product may be suitable for borrowers with a continuing income stream, those wishing to preserve more of their estate for beneficiaries, and residential interest-only customers seeking flexible later life lending solutions.

The product includes existing safeguards such as security of tenure and a no negative equity guarantee.