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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
- 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
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 management (as at FY23) of which c40% (circa £0.5 trillion) is international.
We have a highly synergistic business model, which continues to drive strong returns. We are a leading international player in Institutional Retirement, in Retail Savings and Protection, and in both public and private markets through our Asset Management division. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.
As at 7 June 2024, we estimate the Group’s Solvency II coverage ratio to be 224%.
As at 11 June 2024, Legal & General has a market capitalisation of £14.6 billion.
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.