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.”