L&G eyes more interest-only lifetime mortgage tie-ups

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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.” 

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  • Robert Ducker 6th November 2017 at 4:50 pm

    Good for L & G but is that the best outcome for the borrower? L & G are a good company but their rates and sometimes their underwriting rules would preclude many customers, should these Lenders not be passing these cases to National Brokers for better independent advice?