Legal & General Flexible Blue
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
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Legal & General Flexible Blue Review
Flexible Blue Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
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.
- We'll provide detailed information about the Flexible Blue scheme.
- We’ll help you assess whether this plan could be right for you and your family.
- We'll explain how low the current interest rates are for the Flexible Blue product.
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
- Boosting retirement income.
- Paying off credit debts or loans.
- Gifting money to family. (E.g. To help children pay a deposit on their first house)
- Taking a trip of a lifetime.
- Replacing your car with the one you've always wanted.
- Making home & garden improvements.
Who Are Legal & General?
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.
Legal & General's Other Equity Release Schemes
Are you looking for a specific equity release scheme?
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?
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