L&G expands lifetime mortgage proposition

"Today’s retirement is far more diverse than the stereotypes would have us believe and consumers want options that are tailored to the life they want to lead."

The new products include a flexible drawdown option and an addition to the retirement lender’s optional payment lifetime mortgage range.

As a result of the new LTV bands and following broker feedback, L&G has also ended the pilot which offered slightly reduced interest rates to customers outside of London and the South East.

In place of the pilot, Legal & General has reduced rates across its range of lifetime mortgages for all new customers by up to 0.21%, offering a single range of reduced interest rates, regardless of a customer’s location.

The new rates will be offered automatically to customers whose applications have been submitted but who have not yet received an offer. For advisers whose clients have received an offer and who want to benefit from the latest reduction, L&G has also created a simplified process which allows brokers to request a new offer for clients.

Steve Ellis, CEO at Legal & General Home Finance, said: “At Legal & General we’re committed to helping customers enjoy the retirement they’ve always wanted, whatever their plans may be. Today’s retirement is far more diverse than the stereotypes would have us believe and consumers want options that are tailored to the life they want to lead when they retire. We think that a crucial part of that process is giving advisers the choice, tools and support they want and need.

"These latest changes we’ve made today are absolutely part of that approach and come in direct response to feedback from intermediaries. It’s something that I believe shows we’re a lender not just leading the market, but one that is willing to listen and make changes to help consumers to get the most out of later life.”