L&G lifetime mortgage lending hits £201m

Legal & General completed its acquisition of New Life Home Finance Limited in April 2015 and has since rebranded it as Legal & General Home Finance, launched an extended product range and enhanced the operational capability to deliver higher volumes.

£99m of lending in the final quarter of 2015 gave Legal & General a 22% market share demonstrating the progress from a 1% market share in the first quarter of 2015 immediately prior to acquisition.

The Equity Release Council recently announced that lifetime mortgage lending reached a new record high in 2015, at £1.6 billion, up 16% on the prior year. The number of people over 60 is expected to grow by 6.3 million in the next 20 years, coupled with an estimated £1.3 trillion of housing equity currently owned by the over 60s in the UK.

Bernie Hickman, Chief Executive Officer, Legal & General Home Finance, said:

“I’m delighted with the start Legal & General Home Finance has made in the lifetime mortgage market in 2015. The market has experienced 20% compound annual growth since 2011, and an ageing population adds further potential growth in years to come. With funding from our annuity portfolio we have been able to offer customers competitive interest rates and great product features, which in turn make lifetime mortgages even more attractive for customers wanting to release equity without moving from their homes. Lifetime mortgages further diversify our high quality annuity asset portfolio as we increase our exposure to direct investments.”