Press releases

Legal & General Home Finance improves repayment flexibility on lifetime mortgages

Legal & General Home Finance will allow new Flexible Lifetime Mortgage customers to make up to 12 partial repayments each year, as part of its commitment to make its product range as flexible as possible.

19 Jul 2023

Full press release

  • Legal & General Home Finance has enhanced its Optional Partial Repayments feature on its Flexible Lifetime Mortgage to drive even greater payment flexibility across its product range
  • New customers are now able to make up to 12 repayments each year, up from four, and make repayments by Standing Order

Partial repayments of up to 10% of the total amount borrowed over a year will be allowed penalty free and repayments can also now be made by Standing Order.

The move, in response to evolving customer needs and adviser feedback, allows new customers to reduce the cost of borrowing throughout the lifetime of the loan and gives customers the option to stop and restart payments without contacting Legal & General.

Legal & General is always looking to innovate to provide more choice and flexibility. The business was the first to bring Optional Payment Lifetime Mortgages (OPLM) to market; allowing customers to pay some, or all, of the monthly interest. Today’s announcement takes this commitment one step further to better serve individual needs.

The change follows a series of new features and product developments including an extension of the Offer Validity period to 90 days earlier this year to add an extra layer of reassurance to customers, and a reduction to the minimum drawdown amount to £1,000 to provide further flexibility.

Andrew Gilbert, Product Director, Legal & General Home Finance: “We’re always looking for ways to drive greater flexibility and help customers manage their interest payments in a way that best suits their financial needs. As inflation continues to put a strain on finances, we’re taking active steps to ensure our customers are in the best position for later life.”

Further information

Microsoftteams Image

Claire Byrd

Senior PR Manager

Legal & General Retail

Notes to editors

Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management1 of which 40% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.

1Data as at 31 December 2023.

Legal & General Retail helps create brighter financial futures for all our customers. The division covers the savings, protection and retirement needs of our c.14 million retail policyholders and workplace members.  

In 2023, we had total individual annuity sales of £1,431 million, and issued £299 million of Lifetime Mortgages and Retirement Interest Only Mortgages. Our Workplace pension platform served 5.2 million members, while our Protection businesses gave peace of mind to several million direct, group and US customers, taking in £1,991 million of UK and $1,584 million of US gross written premiums.