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Legal and General surpasses £200m lifetime mortgage goal

  • 05/02/2016
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Legal and General surpasses £200m lifetime mortgage goal
Legal and General has hit its lifetime mortgage lending target for 2015 of £200m, following its acquisition of New Life Home Finance in April last year.

Legal and General Home Finance achieved £201m worth of lending in 2015, with £99m of this occurring during the fourth quarter of the year.

This portion of lending has helped Legal and General gain a 22% lifetime market share, up from 1% during the first quarter of 2015, immediately prior to acquisition of the Newlife brand.

In its interim results published last year, Legal and General doubled its original lending target for lifetime mortgages up from £100m. It said it expected the individual annuity sales market to decline further, after sales at the group fell by 53% in the six months in 30 June 2015.

Figures published by the Equity Release Council in January showed that lending in the sector reached £1.61bn in 2015, a 17% increase on 2014.

Bernie Hickman, CEO, Legal and General Home Finance said: “I’m delighted with the start Legal & General Home Finance has made in the lifetime mortgage market in 2015. The market has experienced 20% compound annual growth since 2011, and an ageing population adds further potential growth in years to come.

“With funding from our annuity portfolio we have been able to offer customers competitive interest rates and great product features, which in turn make lifetime mortgages even more attractive for customers wanting to release equity without moving from their homes. Lifetime mortgages further diversify our high quality annuity asset portfolio as we increase our exposure to direct investments.”

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