Flexible retirement solutions provider LV= has launched its new equity release product, Flexible Lifetime Mortgage, which allows homeowners to draw down funds from the equity in their home when they need to.

The LV= Flexible Lifetime Mortgage also offers homeowners a 15-year guarantee on the maximum loan amount that can be drawn down.

Homeowners between the ages of 60 and 95 can draw down a minimum amount of GBP10,000. Additional withdrawals of at least GBP2,000 can be made, up to the maximum loan agreed at outset.

The Flexible Lifetime Mortgage current rate of interest is fixed for the lifetime of the loan, and will be 6.95% at launch. The overall cost for comparison is 7.1% APR.

An initial application fee of GBP695 applies which includes the cost of two further property re-valuations throughout the lifetime of the loan. The product also comes with a ‘No Negative Equity Guarantee’, which means that both the customer and their beneficiaries will never have to pay back more than the value of their home on death or permanent entry into long term care.

Vanessa Owen, head of equity release at LV=, said: There are no complex fees, and the maximum loan agreed at outset is absolutely guaranteed to be available for the borrower to draw on for 15 years.

Home owners over the age of 60 have the added benefit of being able to drawdown money from their property as and when they need it for what ever purpose they wish to use the equity, be it bridging an unexpected pensions shortfall, or making their retirement years more comfortable.