Legal & General Flexible Blue

Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui

Are You Considering the Flexible Blue Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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Legal & General Flexible Blue Review

Flexible Blue Key Details

Type Rate APR
Legal & General Fixed 3.42% 3.60%

Scheme Incentives

  • Cashback
  • Free Valuation
  • Free Application

Scheme Offers

  • Inheritance Protection
  • 3-year No Early Repayment Charge*
  • Downsizing Protection Feature

I think you’ll agree with me when I say:

It’s REALLY hard to choose the best equity release scheme with all the choices available.

Or is it?

Is the Legal & General Flexible Blue, equity release scheme the best?

Don’t let your equity release dream become a nightmare!

Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.

However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.

As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.

Could the Legal & General Flexible Blue be the right equity release plan for you?
We’re here to help you:
Legal & General is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with Legal & General?
Let’s find out!
Legal & General Flexible Blue

What’s Equity Release?

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Learn More: What’s Equity Release?

How Does Equity Release Work?

Equity release is available for individuals or couples over the age of 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: How Does Equity Release Work?

We’ve summed up the most important information about the topic in this quick video.

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Most popular reasons for releasing equity

Who Are Legal & General?

Legal & General Group plc, or simply Legal & General, is a British global financial services corporation based in London. Investment management,1Â lifetime mortgages,2Â pensions, annuities, and life insurance are some of the goods and services it offers.

Scheme Background

Legal & General (L&G) Home Finance leads the post retirement lending market with a range of equity release schemes. They offer flexible drawdown lifetime mortgage plans & high maximum lump sum plans, all with the control measure of a 10% partial repayment function.

Legal & General entered the equity release market in 2015 after acquiring lifetime mortgage company, New Life Mortgages. This enabled them a quicker route to market with immediate permissions, whilst at the same time obtaining PRA & FCA regulatory approval.

Constantly innovating Legal & General has more equity release plans in store with ambitious targets to grow the market significantly over the forthcoming years.

Eligibility & Requirements

The Legal & General Flexible Blue Voluntary Repayment Lifetime Mortgage is created particularly for individuals seeking one of the largest equity release lump amounts available. The Flexible Blue plan is simple in design, as it allows a single tax-free release of equity. If the maximum release is not used, any unused allowance is stored in a cash reserve facility for future use if necessary.

The Flexi Blue plan varies from the Flexible Indigo in that the Blue’s maximum loan size is less. The L&G Flexible Blue voluntary payment plan, on the other hand, offers a reduced interest rate at the expense of the loan amount given by the Flexible Indigo scheme.

Minimum Property Valuation

The minimum property value for this Flexible Blue Lifetime Mortgage is £100,000, with an ex-council property valuation of £100,000 as well. Outside of London, the maximum property valuation is £2 million, with homes in London allowed up to £4 million.

Property Location Requirements

The property, which must be a primary residence, must be located in England, Wales, or mainland Scotland.

Legal and General will only calculate the value of flats and maisonettes based on 85 percent of their current market value.

Furthermore, if the property is leased, the minimum number of years remaining must be at least 185.

Single vs Joint

The L&G Flexible Blue Voluntary Payment Lifetime Mortgage is offered as a single or joint life loan. The youngest homeowner is 55 years old, with a usual maximum age of 90 years old. In some cases, a person’s age of 90 or more may be appropriate.

Minimum Release

This plan’s minimum loan size is £10,000, with a maximum release amount of £750,000.

Scheme Features

Legal and General’s Flexible Blue Plan is a lifetime mortgage with optional repayments. This enables the homeowner to make partial repayments to Legal & General, with the major benefit being that NO evidence of income is required. As a result, for people who are experiencing trouble getting residential mortgages, voluntary repayment plans provide a non-verification mortgage option.

The Legal & General Voluntary Repayment Blue plan begins as a single release equity lifetime mortgage program, but with the option of a drawdown facility if the maximum is not accepted on day one. This voluntary payment option offers a larger tax-free lump sum cash release that is available for immediate usage. This is perfect for people who want to access a larger single release of equity while also having the option of withdrawing more through drawdown in the future or making repayments utilizing the 10% pa payment facility.

This Flexible Blue plan has one of the largest potential equity release amounts available among Legal & General’s lifetime mortgage products. On this system, their loan-to-value proportion starts at 21.2 percent at age 55 and rises to 50.5 percent at age 85 and higher. As a result, if you are in good health and searching for a larger maximum loan amount with the flexibility of making optional partial repayments with no income verification, the L&G Flexible Blue equity release plan rates well.

All Legal & General plans have a Downsizing Protection feature.

Downsizing Protection with L&G implies that anybody moving home after 5 years from the plan start date can return the loan with no early repayment fee, as long as the property they are moving into does not match L&G’s lending standards.

Valuation Features

A generous free unlimited valuation is provided, as well as a fixed lifetime interest rate on the tax-free lump amount.

Equity Release Council Status

Because Legal & General Home Finance is a member of the Equity Release Council, all of their programs have a no-negative-equity guarantee. As a result, if the property is eventually sold, no beneficiaries will be left with a debt to the equity release business.

Joint Application Features

There is an additional protection provision for the plan’s last survivor for joint applicants.

If one of the homeowners dies or moves into care, the remaining spouse has the option of repaying the lifetime mortgage with no penalty within three years of the occurrence.

Scheme Options

This Legal and General Flexible Blue Voluntary Repayment Mortgage allows any homeowner to spend their tax-free money however they see fit, with no obligation to make repayments.

Another possibility for inclusion is the Inheritance Protection function, which allows the homeowner to secure a predetermined proportion of the property’s ultimate sale value. This is critical for individuals who want to ensure a percentage of the property value from their inheritance.

Repayment Options

However, one aspect of the L&G Blue plan is the Partial Repayment Option, which allows the planholder to begin repaying up to 10% of the original amount borrowed each year with NO penalty or income verification. This aids in the management of the future balance of this lifetime mortgage UK program, allowing you to decrease the interest roll-up impact, pay off the interest solely, or even repay the future sum over 15-16 years by utilizing the maximum 10% allowed.

Cashback Options

The Flexible Blue Lifetime Mortgage Plan also includes the option to get a 2% payback dependent on the amount borrowed. This results in a 0.2 percent increase in the equity release interest rate.

Footnotes

*The 3-year no-early-repayment-charge period applies to joint life plans when the loan is repaid within 3 years of a partner’s death or long-term care.
** The shown rate includes the normal L&G application charge and no cashback.

Editor’s Rating: 4.79

Legal & General's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Legal & General.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy-to-use table or compare interest rates on equity release!

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

HOW MUCH EQUITY CAN YOU RELEASE?

Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

See how much you can release today!

How Much Can You Release?

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As Featured In
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rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
francis

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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As Featured In
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