Legal & General rolls out equity release mortgage

Legal & General Mortgages&#39 Equity Release Mortgage is now available to all IFAs.

The mortgage, originally launched in March 2002, has until now only been available to a limited number of IFAs.

L&G expects the equity release market to grow during 2003 as increasing numbers of pensioners use some of the equity tied up in their homes to boost their retirement incomes.

The L&G mortgage meets the Safe Home Income Plan standard, meaning customers are guaranteed to be able to live in their properties for the rest of their lives or until they permanently leave their homes, for example when moving into long-term care.

No monthly payments are made on the Equity Release Mortgage. Instead, interest is compounded monthly and added to the outstanding loan to be repaid only when the mortgage itself is repaid.

Interest is fixed at 7.30% for the life of the mortgage.

Claire Edington, director of sales and marketing at Legal & General Mortgages, says: “Equity release provides a major opportunity for IFAs in 2003. With this Equity Release Mortgage they can be sure their customers have access to a plan with all the appropriate safeguards.”