Legal & General Home Finance plans to invest heavily in supporting intermediary channels to develop the retirement lending space.
Launching in November, the retirement provider’s new strategy follows recent announcements about its commitment to the mortgage sector and plans to help address the interest-only shortfall.
These include the launch of the optional payment lifetime mortgage, a new technology partnership with Twenty7Tec, and an agreement with Virgin Money to offer advised lifetime mortgages to the bank’s interest-only customers.
Legal & General Home Finance recently appointed Marie Catch as head of mortgage broker sales. Catch’s remit is to bring more mortgage brokers into the retirement lending sector and broaden Legal & General’s distribution profile.
Legal & General Home Finance chief executive Steve Ellis says: “From our Virgin Money partnership to Marie’s appointment, Legal & General Home Finance is taking big strides to demonstrate our commitment to mortgage brokers and customers. One area is in helping both brokers and customers find solutions for interest-only mortgages that are nearing term, without an adequate repayment plan in place.
“Over the coming months, and into 2019, we will be investing in the mortgage broker market and supporting brokers with all the information they need to start talking to their clients about their borrowing options approaching, and in, retirement.”
Legal & General Home Finance research shows that only a small proportion of interest-only customers coming to the end of their mortgage term know about lifetime mortgages, but many haven’t made plans to repay their debt. It says this presents a huge opportunity for advice to play an important role delivering retirement lending solutions to help customers secure the best possible retirement outcomes.
According to the Financial Conduct Authority, there are approximately 1.7 million mortgage accounts with outstanding interest-only loans.
Catch says: “Our research has shown that brokers are already aware of the opportunities presented by the retirement lending market, but they often don’t know how to take the first step into this sector.
“Legal & General’s intention is to offer a guiding hand to all brokers – whether it be providing information about the routes to qualification or support on how to advise consumers about lifetime mortgages.”