Legal & General Income Indigo
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
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Legal & General Income Indigo Review
Income Indigo Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 4.63% | 5.2% |
Scheme Incentives
- Free Valuation
Scheme Offers
- Payment Periods – 10,15,20,25 Years
- Inheritance Protection
- Optional Partial Repayments*
- 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 Income Indigo, 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 Income Indigo 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 Income Indigo product.
Let’s find out!
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 Income Indigo Lifetime Mortgage program is particularly designed to assist homeowners who want to boost their retirement income. The money is received monthly, and while it is tax-free at the time of receipt, HMRC considers it to be income, which may influence eligibility for means-tested assistance.
The L&G Income pattern comes in four flavors: Pink, Yellow, Blue, and Indigo. The loan-to-value ratios change throughout the plans, with the maximum loan size growing over the plans until it reaches the Flexible Indigo.
Minimum Property Valuation
The minimum property valuation for the Income Indigo Lifetime Mortgage is £100000, with an ex-council property worth of £100000. 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 the primary residence, must be located in England, Wales, or mainland Scotland. Legal and General will only base its estimates on 85 percent of the current market value for flats and maisonettes.
Single vs Joint
The L&G Income Indigo 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.
Minimum Release
The minimum first loan for this Indigo plan is £2500, which should cover initial setup fees, with a maximum initial cash release of 10% of the total credit facility given.
Scheme Features
The Income Indigo Plan from Legal and General is the first whole-of-market lifetime mortgage that offers a tax-free income for a certain period of years. The amount available is determined by age, property worth, original loan amount, and duration of payment. The timeframe over which the income can be provided is 10, 15, 20, and 25 years, which is intended to correspond with the homeowner’s retirement plans.
The minimum monthly income payable is £200 and is determined for the pre-agreed duration. This income can be terminated at any moment prior to the conclusion of the income term without penalty. However, if the income is terminated, it cannot be resumed, nor can subsequent lump sum withdrawals be made.
Early Repayment Feature
All of Legal & General’s plans offer Downsizing Protection. Downsizing Protection in the L&G version implies that anybody moving house after 5 years from the plan start date can return the loan with no early repayment penalty, as long as the property they are moving into does not match L&G’s lending standards.
Equity Release Council Status
Legal & General is a member of the Equity Release Council, thus all of its plans include a no-negative-equity guarantee. As a result, if the property is eventually sold, any beneficiaries cannot be left with a debt to the equity release provider.
Joint Application Features
The L&G Income Indigo Lifetime Mortgage is offered as a single or joint life loan. The youngest homeowner is 55 years old, with an usual maximum age of 90 years old.
Scheme Options
This Legal and General Income Indigo Lifetime Mortgage allows any homeowner to spend their tax-free income however they see fit, with no need to make repayments. However, one aspect of the L&G Income Indigo plan is the Partial Repayment Option, which allows the plan user to begin making up to 10% annual repayments with no penalty. This is only possible when the regular monthly income has ceased.
Partial repayments assist in managing and controlling the future balance of the lifetime mortgage UK plan, either by reducing the roll-up impact of the interest, paying off the interest charged, or even reducing the future debt by utilizing the maximum 10% allowed.
Repayment Options
This Legal and General Income Indigo Lifetime Mortgage allows any homeowner to spend their tax-free income however they see fit, with no need to make repayments.
Inheritance Protection
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.
Footnotes
*The plan mentioned is the 10-year Income Indigo Plan, which has the greatest loan-to-value of the four options but also has the highest interest rate.
Legal & General's Other Equity Release Schemes
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