L&G Home Finance is eyeing another deal that will see the firm offer lifetime mortgages to ageing interest-only customers.
Last week the firm signed a deal to supply equity release loans to Co-operative Bank borrowers with problems paying off their interest-only balance.
L&G announced a similar deal with Santander last year.
Speaking to Mortgage Strategy, L&G Home Finance managing director Steve Ellis says the firm is set to announce a similar deal.
He says: “Our ambition as a business is to be socially and economically useful. Deals like this sit at the heart of what we are as a business. I would be very disappointed if we are not talking about deal number three in the not-too-distant future.”
Ellis says lifetime mortgages are a solution for many of the interest-only customers coming towards the end of their terms with no repayment plan for their mortgages.
He adds: “We all spend 40 years working and imagine we are going to enter a secure retirement, and for many that is not necessarily on the cards. It is a problem that needs solving. It’s a big problem in the minds of consumers. Lifetime mortgages is one way customers can secure the retirement they’ve been working for.”
Ellis says the deals are complicated and take a while to set up.
He says: “We absolutely do not want customers to end up with a lifetime mortgage if it’s not right for them.
“So part of working through the establishment of the relationships with both Santander and the Co-op was mapping the customer journey and all of the solutions that the bank offers or plans to offer, and where lifetime mortgages fit in that.
“Building a bespoke customer journey is what really takes the time.”