L&G Home Finance enhances payment term lifetime mortgage offering

Legal & General Home Finance has enhanced its payment term lifetime mortgage (PTLM) offering to make the product more accessible to borrowers.

This move, in response to adviser feedback, removes the requirement for one borrower to be in full-time employment. To meet the minimum eligibility criteria for the PTLM product, borrowers who are no longer in employment must have a sustainable income, whether that be through pensions, maintenance payments, rental income or income from secure investments.

These changes can benefit borrowers who are unable to get a term extension on their interest-only residential mortgages or other interest-only mortgages, as well as helping those looking to fund home improvements, gift loved ones, or buy a property to meet their individual needs.

The product also helps borrowers access property wealth earlier – from 50, rather than 55 – and offers a tax-free cash lump sum in return for fixed monthly interest repayments up until retirement or age 75, whichever comes first. If they are already retired, the payment term can last up to the oldest borrower's 75th birthday. PTLM customers can borrow up to 69.9% LTV – substantially 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.”