LV= announces equity release rate cut

The interest rate on LV='s lifetime mortgage for customers up to 80 years old will fall from 6.59% to 6.49% AER from 3 January 2011.

With a new rate of 6.69% (from 6.79%) AER for the same age range on its flexible lifetime mortgage.

Vanessa Owen, LV= head of equity release said:

"IFAs have previously indicated that customers found the guaranteed features of our equity release products, such as clearly defined early repayment charges, really attractive.

"I am confident that this combined with our new lower rates makes our equity release product an even stronger offering for advisers and their clients."

Advisers that have submitted an application, but whose client has not yet been offered a lifetime or flexible lifetime mortgage will automatically be offered a mortgage at the new rate.