Legal & General has launched a branded lifetime mortgage product range.
This follows the acquisition of specialist equity release provider Newlife in April 2015.
L&G says lending is expected to exceed £100m in 2015 and to continue to increase significantly in 2016, as it pursues its aim to the a leading provider in lifetime mortgages.
Bernie Hickman, managing director, individual retirement at Legal & General, said: “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.”
Andrea Rozario, chief corporate officer at Bower Retirement Services, added: “Legal & General’s launch of its own branded lifetime mortgage is a major endorsement of the equity release market highlighting how leading insurer recognises the growth story.
“They are targeting £100 million of lending this year and significant expansion next year – but even more important is their focus on innovation with talk of new products including a five-year fixed rate interest-only deal which will help the 120,000-plus over-65s estimated to be coming to the end of interest-only deals by 2020.
“Combined with the news that Retirement Advantage has had to pull deals because of strong demand it underlines the pace of expansion in the market. Advisers need to ensure they can meet the demand and that they are committed to maintaining high standards of service.”