Legal & General Optional Payment Indigo

Are You Considering the Optional Payment Indigo 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 Optional Payment Indigo Review

Optional Payment Indigo Key Details

Type Rate APR
Legal & General Fixed 3.97% 4.10%

Scheme Incentives

  • Cashback
  • Free Valuation
  • Free Application

Scheme Offers

  • Inheritance Protection Guarantee
  • 10%pa Optional Partial Repayments
  • 3-Year No Early Repayment Charge*
  • Downsizing Protection Feature
Legal & General Optional Payment Indigo

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 Optional Payment 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 in’s and out’s of equity release, as you deserve only the best.

However, 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 Optional Payment Indigo 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!

What's Equity Release?

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

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 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?

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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,1  lifetime mortgages,2  pensions, annuities, and life insurance are some of the goods and services it offers.
Learn more about the various Legal & General equity release schemes..

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 Optional Payment Indigo Lifetime Mortgage (OPLM) is designed for people who want to make monthly interest payments for a certain period of time, such as a fixed term or over the life of their mortgage.

This Optional Payment Indigo Plan offers the highest interest rate available among Legal & General’s interest-only mortgage options. To assist control the amount, the OPLM Indigo plan provides the discipline of fixed interest monthly installments. The Indigo Plan has a larger maximum release than the Optional Payment Blue equivalent, as well as higher comparable monthly payments.

Minimum Property Valuation

The minimum property valuation for this Optional Payment 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 price for flats and maisonettes.

Single vs Joint

Optional Payment for L&G 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.

Minimum Release

This OPLM Max plan has a minimum borrowing of £10000 and a maximum release of £750000.

Scheme Features

Legal & General’s Optional Payment Indigo Plan is an interest-only lifetime mortgage plan that gives a large initial tax-free lump sum cash release for immediate usage, with any leftover unused funds held in an unlimited cash reserve facility. This is perfect for people who want to borrow a larger lump sum but want to keep control of the balance by making monthly payments and having access to future money if needed.

The Optional Payment Indigo Plan also has the greatest withdrawal facility among the OPLM options. If the maximum release is not used right away, drawdown is an option. As a result, any unused cash is kept in an unlimited cash reserve facility. This is great for people who want to have access to a larger sum of money in the future while still being able to make monthly payments. The minimum withdrawal from the cash reserve facility is only £2000, and there are no administrative fees. Any additional cash withdrawals would be subject to the interest rate in effect at the time of withdrawal.

Valuation Features

A generous free unlimited valuation is provided, as well as a set lifetime interest rate on the original lump amount. Any subsequent withdrawals would be subject to the interest rate in effect at the time of the withdrawal.

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, upon ultimate sale of the property, any beneficiaries cannot be left with a debt to the equity release provider in excess of the property value.

Joint Application Features

Optional Payment for L&G 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.

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 Optional Payment Indigo Lifetime Mortgage allows homeowners to spend their tax-free cash as they see fit and gives them the option of paying some or all of the monthly interest back to L&G through direct debit.

These monthly repayments might range from a minimum of £25 per month to 100 percent of the interest paid by the lender each month. This aids in the management of the future balance of this lifetime mortgage UK program. Choosing to pay 100 percent of the interest charged can assist keep a level balance, but paying off a smaller amount will slow down any interest roll-up. This Flexible OPLM Indigo plan has the extra benefit of not requiring evidence of income or affordability checks.

Personal circumstances may necessitate the cessation of monthly payments at any moment. In such cases, the plan will revert to a roll-up model, with interest accumulating each year after that. Even if monthly payments are no longer made, the L&G Optional Partial Repayment option becomes accessible, allowing up to 10% of the initial loan amount to be returned each year with no penalty. L&G permits four repayments in each 12-month period, each of which must be a minimum of £500. These payments do not exclude access to any potential drawdown facility.

Repayment Options

The plan is best suited to residential interest-only mortgagees who have no repayment strategy and want the greatest maximum amount for mortgage settlement, or homeowners who want to release equity but are concerned about the interest accumulating throughout their lifetime.

Inheritance Protection

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

Application Fees

Legal and General’s Optional Payment Indigo Plan updates are still in the works. We will give an update soon.

Cashback Options

You may further customize the product by receiving a 2% payback and selecting whether or not to pay an upfront application cost. Both of these additions will have an impact on the relevant interest rate.

Footnotes

*The 3-year no early repayment charge applies to joint life plans where the loan is repaid within 3 years of a partner’s death or long-term care.
**The 2% cash back option raises the applicable rate by 0.2 percent.
***Plan available with and without arrangement fee – rate quoted with application fee and no cashback.

Editor’s Rating: 4.85

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!

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

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.

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HOW MUCH EQUITY CAN YOU RELEASE?

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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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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.
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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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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 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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