The new pricing approach from Legal and General Home Finance means that equity release borrowers who commit to servicing their interest by selecting this deal will be offered interest rates based on the age of the youngest borrower, which could be lower than a rate based on the age of the oldest applicant. The interest rate offered will also be based on whether the borrower is a sole or joint applicant.
A higher LTV of up to 74 per cent is extended to sole borrowers, while joint applicants can access an LTV of up to 55.6 per cent.
The change follows Legal and General’s similar individual pricing approach to its Interest Roll Up Lifetime Mortgage and Optional Payment Lifetime Mortgage products, which help advisers provide customers with the best rates for their specific circumstances.
David G Jones (pictured), distribution director at Legal and General Home Finance, said: “Our Payment Term Lifetime Mortgage product offers more choice for homeowners who are sitting on equity in their homes but can’t access this because of their age and borrowing needs.
“The product is designed to provide customers access to higher LTVs as they commit to service their interest. This also means they benefit from a lower cost of borrowing, when compared to Interest Roll Up Lifetime Mortgages.”
Last month, Legal and General Home Finance announced an integration with the Advise Wise platform.
