Legal & General Home Finance is to offer its lifetime mortgages, including its Optional Payment Lifetime Mortgage (OPLM) as a potential solution for NatWest interest-only borrowers aged 55 and above who are at the end of their mortgage term and unable to repay their loan.
The agreement adds to existing arrangements with Virgin Money, Santander and The Co-operative Bank.
NatWest will offer interest-only customers who may benefit, the opportunity to speak with Legal & General’s specialist partner for advice on whether a lifetime mortgage would be suitable for them.
As well as NatWest customers, other Royal Bank of Scotland customers will also be included in the scheme.
Customers will be offered advice by The Retirement Lending Advisers (TRLA)- equity release specialists who are part of Key Retirement Solutions. TRLA only give advice on Legal & General’s lifetime mortgages.
NatWest, part of the RBS Group, is the first of the ‘Big Four’ banks to work with Legal & General to offer more options to its interest-only customers.
Steve Ellis, CEO, Legal & General Home Finance, said: “At Legal & General Home Finance we believe that lifetime mortgages can play a central role for interest-only mortgage holders. We are committed to raising awareness about the transformative impact housing wealth could have to help these borrowers, enabling them to pay off their mortgage debt and enjoy the retirement they’ve always wanted, while remaining in the home they love.
“We’re delighted to be collaborating with NatWest, who also recognise the positive role lifetime mortgages can play, and we look forward to working closely with the Bank to provide another option for these interest-only borrowers.”
Ian McLaughlin, managing director of home buying & ownership at NatWest, added: “We always work hard to support any of our interest-only mortgage customers who are reaching the end of their loan term but don’t have a repayment method in place.
“Introducing the option of speaking to Legal & General in relation to a Lifetime mortgage is an important addition to the way in which we will help these customers find a solution that best suits their circumstances.”