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
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.”
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% 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.
*as at HY 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.13 million retail policyholders and workplace members.
In 2022, we had total individual annuity sales of £954 million, and issued £632 million of Lifetime Mortgages and Retirement Interest Only Mortgages. Our Workplace pension platform served 4.9 million members, while our Protection businesses gave peace of mind to more than 6.3 million UK life insurance, 1.8 million group and 1.5 million US customers, taking in £3.1 billion of gross written premiums.
*at 31 Dec 2022