View more on these topics

L&G sells mortgage and banking arms for £131m

Legal & General has sold its mortgage and deposit account business to Northern Rock for £131m in a deal that will see the providers distribute each other&#39s products.

Northern Rock will retain the L&G branding for three months after purchase. The current agreement for L&G to distribute long-term savings and protection products through Northern Rock will continue.

There will also be a new distribution agreement in which L&G will white-label banking products manufactured by Northern Rock.

The cash sale of L&G&#39s banking subsidiary, which is subject to regulatory approval, will net it a £36m profit. L&G&#39s mortgage club is unaffected by the deal.

L&G says the sale will enable it to concentrate on growing its core business of long-term savings, protection and general insurance. For Northern Rock, the deal allows it to supplement organic growth.

L&G Bank and L&G Mortgage Services have 106,000 customers with £1.2m in mortgages, £65m in personal loans and £1.2bn in retail deposits. L&G MS has focused on buy-to-let mortgages and the equity release market.

L&G head of public relations John Morgan says: “It is a question of sticking to your knitting. The deposit market is swamped and it is difficult to be competitive unless you inject a large amount of capital. So we are focusing our energies on life, pensions and investments, particularly Isas.”

Northern Rock chief executive Adam Applegarth says: “This an attractive deal for us. We have been seeking opportunities to augment our business by buying high-quality mortgage books, hence our reason for approaching L&G. As a result of this deal, Northern Rock will be acquiring a funded, low-risk, high-performing mortgage book at a fair premium of £36m above net asset value.”


Threadneedle Investments – Threadneedle Global Healthcare Fund

Tuesday, July 9, 2002Type: OeicAim: Growth by investing in pharmaceutical companies,biotechnology, healthcare providers, medical supply companies andproducers of advanced medical devicesMinimum investment: Lump sum £2,000Investment split: Pharmaceuticals 55.5%, healthcare 14%,biotechnology 9.5%, medical technology 7%, medical supplies 8.5%,cash 5.5%Isa link: YesPep transfers: YesCharges: Initial 3.75%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0800 0684000

Low-cost Sipp from GE Life

GE Life is revamping its pension range by offering a new self-invested personal pension with no initial fee and an annual charge of £100.The Simplified Sipp is targeted at the mid-market investor who wants investment flexibility without paying the charges of a full Sipp.Investors can choose from a range of collective funds, inc-luding unit trusts, […]

Standard Life – Personal Pension Flex

Friday, 12 July 2002 Type: Personal pension Minimum premium: Lump sum £1,000, monthly £40, annual £400 Minimum-maximum ages: 1 &#45 75 Fund links: Sterling one, fixed interest one, index linked one, property one, protection one, structured one, managed one, ethical one, stock exchange one, international one, European one, Japanese one, North American one, Pacific Basin […]

Scottish women-only IFA doubles business

Scottish women-only IFA Independent Women achieved a 50 per cent increase in turnover in the past year.Turnover in the year to May 31, 2002, increased to £850,000 from around £400,000. The Edinburgh-based IFA hopes this growth will continue and that next year&#39s turnover will break the £1m mark.Business development manager Eve Callaghan attributes the firm&#39s […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm