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L&G targets £100m lending following equity release launch

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Legal and General has confirmed its entry into the equity release market and is targeting lending in excess of £100m this year.

L&G first announced it would purchase Newlife, an equity release provider, in February, and the insurer now plans to fully integrate the business into its own distribution systems.

As a result, the insurer hopes to see lending exceed £100m in 2015, with a further “significant” increase expected in 2016.

L&G is also backing the business with a operational investments into systems, products and people. However, a spokesman for the firm was unable to provide details of the scale of the investment.

L&G managing director of individual retirement Bernie Hickman says: “The launch of Legal & General Lifetime Mortgages marks an important and significant point in the evolution of our retirement business.

“In the UK there is a clear need for housing to play a more central role in helping create better outcomes for more people, particularly as they progress deeper into retirement. The market is growing and we want to be known as a brand that helps more and more people release the money tied up in their property.”

Earlier this month, the firm claimed that “last time buyers” represent a critical part of the answer to the UK’s housing crisis.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. The devil is in the detail

    Will L&G offer the same rip off terms as are currently on the market? What interest rates? What percentage of the value will they take in comparison to the percentage sum released?

    Will they permit a non commission option with consequent enhancement to the product?

    Or like the rest are they going to take advantage of the desperate or the poorly advised to make usurious profits?

  2. Anthony Badaloo 23rd June 2015 at 8:13 pm

    Great to see a provider like Legal and General moving into the Equity Release space. Hope they can come up competitive rates and terms, in keeping with their reputation in the life and critical illness protection arena. This area of the market can only grow, with the demographics and steep rise in property prices over recent years. Many people will have cashed out their pension, and will have little option. Competition can only be a positive force.

    Anthony Badaloo is Principal at Church Hill Finance http://www.church-hill.net

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