Legal & General Home Finance has updated its payment term lifetime mortgage (PTLM) offering in response to advisor feedback.
The change removes the requirement for one borrower to be in full-time employment has now been removed.
Borrowers applying for the PTLM product must prove they have a sustainable income, which can be demonstrated through rental income, maintenance payments, pensions or income from secure payments.
This move could help borrowers who are currently unable to secure a term-extension on interest-only residential mortgages or other interest-only mortgages.
It could also benefit anyone hoping to secure funds for home improvements or searching for a property to meet individual requirements.
The product enables borrowers to access property aged 50 - rather than 55 - while also offering a tax-free cash lump sum in return for fixed monthly interest repayments up until retirement or age 75, whichever comes first.
However, the payment term can last up to the oldest borrower’s 75th birthday, if they are already retired.
PTLM customers can borrow up to 69.9% LTV – which is higher than LTVs in Legal & General’s existing later life mortgage range.
Lorna Shah, Managing Director of Legal & General Retail Retirement, said: “We are always listening to adviser feedback to ensure the best outcomes for people looking to benefit from accessing their property wealth. That’s why we’re improving the accessibility of our PTLM product for borrowers in retirement, whose individual needs are not currently being well served in the existing market.
“While not suitable for everyone, lifetime mortgage solutions can be an important consideration as part of a holistic approach to financial planning. For homeowners weighing up their choices, it’s worth speaking to a mortgage broker or financial adviser to be clear about all the options available to them.”
