Legal & General announce lifetime mortgage deal with Virgin Money

Legal & General Home Finance has signed a five-year partnership deal with Virgin Money that will allow Virgin’s interest-only customers to access Legal & General’s lifetime mortgage product range.

The products will be introduced to interest-only Virgin Money customers who are approaching the end of their terms, and will include the optional payment lifetime mortgage product, which does not require customers to pass affordability criteria because it comes under lifetime mortgage rules.

Existing partnerships with Santander and The Co-coperative Bank means that Legal & General’s lifetime mortgae range is now available to 20 per cent of the UK’s interest-only mortgage borrowers, of which 1.67 million are outstanding. Of these, 200,000 will mature by 2020.

Legal & General home finance chief executive Steve Ellis says: “Solving the interest-only challenge is just one area where we see lifetime mortgages as a potentially transformative solution for the lives of UK borrowers. Britain’s over-55s are currently sitting on over £1tn of property wealth – what could that money do for retirement outcomes, our housing market, and even our economy?

“Lifetime mortgages are already having a hugely positive impact on our society, and at Legal & General we are committed to raising awareness about the transformative effect these products could have for many of Britain’s retirees.”

Virgin Money director of mortgages Andrew Asaam adds: “[Legal & General’s] lifetime mortgage range provides excellent options to help customers manage their finances effectively, including individuals who might be interested in accessing their property wealth to improve their standard of living in later life.”

Recommended

Home-House-Monopoly-Money-Property-700x450.jpg
1

L&G launches optional payment lifetime mortgage

Legal & General has today launched a lifetime mortgage that gives customers the choice of paying monthly or waiting until they die or move into care. The firm’s optional payment lifetime mortgage is aimed at those caught between traditional equity release and residential mortgages. An example is a borrower lacking the retirement income for a […]

Boardroom-Business-Chair-Executive-Corporate-700x450.jpg

L&G Home Finance hires two to bolster lifetime mortgages

Legal & General Home Finance has hired two non-executive directors to join industry veteran Stephen Smith. The firm has hired Target Servicing non-executive director Steve Haggerty and  Barry Meeks. Haggerty (pictured left) is currently a non-executive director of Target Servicing and has worked for Skipton Building Society, Belmont Green and others. Meeks (pictured below) is […]

Marie Catch

One to One: Marie Catch, Legal & General Mortgage Club

Liaising with brokers, working closely with trade organisations and adding value to the market — a Wonder Woman in her own right What does your role entail? Working with Legal & General Mortgage Club for more than 10 years, I have regular meetings with key broker accounts to assist with fulfilling their growth strategies, allowing […]

Buy-to-let Watch: Is consultation too much to ask?

The lettings industry has been the focus of intense scrutiny of late. This can be taken one of two ways. On the one hand, it is evidence that the government is recognising the importance of the rental sector. Indeed, in the Housing White Paper, published last year, it was clear that renting was being given […]

Unfinished business?

Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]

Newsletter

News and expert analysis straight to your inbox

Sign up