Legal & General Home Finance has introduced its new Income Lifetime Mortgage to customers across the UK, following a pilot announced in November 2018.
The move is supported by the launch of a new TV advertising campaign, which seeks to challenge the traditional view of ‘silver surfers’ and ‘golden oldies’ by showing how lifetime mortgages can help people to “enjoy a more colourful retirement”, the insurer said.
The Income Lifetime Mortgage is a new way for consumers to release housing wealth in retirement. The loan is secured against the customer’s home, but pays out a regular monthly income, instead of providing a one-off lump sum or drawdowns that the borrower can request as and when they need. This income is at least £200 a month over a fixed term of 10, 15, 20 or 25 years, and interest rates are fixed for the life of the loan.
The Income Lifetime Mortgage is designed as an additional income to help people maintain their standard of living in later life and make the most of their active retirement years, while remaining in their home.
The TV advert aired for the first time yesterday (21 January) and signals the full launch of the Income Lifetime Mortgage. It features a series of four quick scenes that show how the product can help retirees to enjoy life even more, from spa breaks to modest home improvements and days out with grandchildren.
Steve Ellis, CEO, Legal & General Home Finance, said: “The vocabulary of retirement is very muted. Pensioners spend their ‘grey pounds’ in their ‘golden years’. We can be ‘silver surfers’, ‘silver foxes’ or even ‘golden oldies’ but it all paints an image of a life with the colour drained out.
“As our new TV advert shows, later life couldn’t be more different. People are enjoying a colourful and fun retirement that includes spa breaks, meals out with friends or treating the grandkids.
“At Legal & General we’re always looking at different ways to help people to get the most from a modern retirement, whatever their plans, dreams and goals might be. There’s no one-size-fits-all solution for later life, so whether it’s enabling our customers to make monthly interest repayments or to use their housing wealth to enjoy life’s little luxuries, we’re there to help them have a more colourful retirement.”