Equity Release  

LV scraps valuation fees for lifetime mortgage

LV scraps valuation fees for lifetime mortgage

LV has made changes to the fee structure on its drawdown and lump sum lifetime mortgages.

The provider removed the initial valuation fees on all new applications received which have been quoted after September 14, 2021.

Previously, a valuation fee was levied on properties valued greater than £1.5m.

The move presents a saving of £1,250 for properties valued between £1.5m and £1.75m, and up to £2,655 for properties worth more than £4.5m. 

LV said the change follows “a series of improvements” it has made to its equity release charging structure over the past 18 months, including scrapping this fee for lower value deals. 

David Stevens, retirement director at LV, said: “Attitudes to equity release are changing as more people recognise it as a way to fund retirement.

“After listening to advisers and customers, we have removed valuation fees on properties valued greater than £1.5m.

"The changes are the latest of a series of improvements we have made to our equity release products over the past 18 months, and we will continue to make our lifetime mortgages even more attractive to consumers and advisers.”

Under changes to its early repayment terms new lump sum and drawdown customers can now choose to make an unlimited number of repayments from day one, free of early repayment charges. Minimum repayments have also been reduced to £50.

LV said there are no early repayment charges from 10 years after the completion date of the initial loan, regardless of the date additional drawdowns were taken.

The maximum loan available to drawdown customers was increased in March from £500,000 to £1.5m. 

In January, the protection provider increased the non-medical limits on its flexible income protection plan in a bid to “alleviate growing pressures on the NHS”.

In February, the firm said it was upgrading its life insurance contract terms to provide cover up to the age of 90.

sonia.rach@ft.com

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