The lender, which launched after it bought lender Newlife in April 2015, cut the £600 arrangement fee on the two products but the £1,999 fee remains on its Premier Flexible Lifetime mortgage.
Rates on the Flexible Lifetime Mortgage now stand at an AER of 3.89%. The lump sum product is being reduced by 0.25% to 5.19% AER and the lender’s Premier Flexible Lifetime mortgage is offered at 3.71% AER.
Moneyfacts confirmed over the last 12 months that 58% of the top five lifetime mortgage products with the lowest fixed rate have been Legal & General Lifetime Mortgages.
Steve Ellis, chief operating officer, Legal & General Home Finance, said: “The decision to remove the arrangement fee for the majority of our lifetime mortgages and further reducing the interest we charge for borrowing, ensures that we remain at the forefront of providing ever improving value for consumers. We hope that these changes will make it easier for more and more people to consider how a lifetime mortgage could help to improve their retirement.”
The lender shared plans to lend £500m of equity release this year after completing £231m in the first half and £200m in 2015, its first trading year.
In March, L&G predicted lifetime mortgage sales will hit £2.3bn by 2019 with the insurer effectively reshaping the market after signing a five-year deal with Santander likely to result in £100m of loans a year.
Legal and General gained a 22% lifetime market share last year, up from 1% during the first quarter of 2015, immediately prior to acquisition of the Newlife brand.
Figures published by the Equity Release Council in January this year showed that lending in the sector reached £1.61bn in 2015, a 17% increase on 2014.