When L&G launched its own brand of Lifetime Mortgages in June, lending was expected to reach £100m in 2015. It is now on track to write up to £200m of lifetime mortgages by the end of the year and increasing amounts thereafter.
Last month, Legal & General Mortgage Club announced the launch of its Lifetime Mortgage referral panel, which aims to help brokers provide a greater range of products to older homeowners. The panel will be made up of four firms, including Key Partnerships, Age Partnerships, Responsible Life, and Bower Retirement.
In total, the Legal & General Network facilitated over £32bn of mortgages, up from £29bn in Q3 2014.
However following the Budget reforms to the annuity market, individual annuity sales fell 48% to £262m. L&G says it has seen the proportion of people taking their pension savings as cash increase to 90% from 60% before the introduction of the pension reforms. Its average payment size is £12k.
In contrast, UK defined contribution pension assets increased 13% to £43.3bn, while total annuity assets increased by 8% to £43.1bn.
Operational cash for the Group rose 11% to £936m in Q3, and net cash generation is up 14% at £943m.
Nigel Wilson, Group Chief Executive, said:
“Legal & General’s scale and growing international business, coupled with strategic clarity and financial discipline, has driven a strong performance, particularly in our asset management businesses, resulting in net cash up 14% at £943m.
"UK Defined Contribution pension assets under management are now over £43bn, with further mandates including John Lewis still to fund.
"LGC is focused on attractive financial opportunities in urban regeneration, housing, alternative finance and clean energy. We entered the build-to-rent market and CALA Homes produced record operating profits of £73m.
External political and regulatory uncertainties remain, but we believe that by aligning our strategy to macro trends we have created a high degree of resilience in our business model and are well positioned for further growth.”
