In its 2014 annual results, the lender said it expected to write over £100m of equity release business in 2015 after its purchase of NewLife completed in H1.
Legal & General’s new products include a flexible lifetime mortgage and lump sum lifetime mortgage, both available to homeowners ages 60 and over and for homes valued at £100,000 or over, or £150,000 or over for ex-council properties.
Its flexible option allows customers to take an amount of money with the option of taking out additional money in later years. The lump sum lifetime mortgage enables clients to take a set lump sum but are not looking for the option of further borrowing in the future.
Bernie Hickman, managing director, Individual Retirement at Legal & General, said: “The launch of Legal & General Lifetime Mortgages marks an important and significant point in the evolution of our retirement business.
“In the UK there is a clear need for housing to play a more central role in helping create better outcomes for more people, particularly as they progress deeper into retirement. The market is growing and we want to be known as a brand that helps more and more people release the money tied up in their property.”
Legal & General said it was making further investment in its operational capability in order to create a ‘market leading’ service.
Will Hale, Key Retirement Solutions, business director, said: “Legal & General have brought their expertise to bear in this increasingly important market. It’s early days but so far we have been impressed with both their offering and their commitment to bringing a range of new products to the market coupled with a service proposition that will make life easier for both us and our clients.”