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.