You are here: Home - News -

Legal and General Home Finance signs lifetime mortgage partnership with Virgin Money

  • 06/08/2018
  • 0
Legal and General Home Finance signs lifetime mortgage partnership with Virgin Money
Legal and General Home Finance has signed a five-year partnership agreement with Virgin Money, offering its lifetime mortgage product range to the bank’s interest-only customers aged 55 and over.

A spokesperson linked to the retirement lender told Mortgage Solutions this is its third partnership in a year, after the deals with Santander and The Co-Operative Bank with potentially more to come as part of its growth plans. Legal and General will shortly be able to make its range of lifetime mortgages directly available to 20% of the UK’s interest-only mortgage customers.

Virgin Money’s customers with interest-only mortgages will be introduced to Legal and General’s advised lifetime mortgage products as they approach the end of their loan term. This includes customers who would like to consider their options to pay off the outstanding capital of their interest-only loan, as well as individuals who might be interested in accessing their property wealth to improve their quality of life in retirement.



Optional Payment Lifetime Mortgage

A key offering to Virgin Money customers will be Legal and General’s Optional Payment Lifetime Mortgage, launched in April and developed for interest-only customers.

Customers do not need to pass any affordability assessments or have a capital repayment strategy in place, as the amount owed is repaid from the sale of the property upon death or moving out of the home into long-term care. In the event that they can no longer afford or want to pay their monthly interest repayments, the customer can choose to stop and instead the interest is added to the loan each month.

The Optional Payment Lifetime Mortgage allows customers to pay some or all of the monthly interest, but also stop paying at any time.

As with other lifetime mortgage products, the interest rate on Legal and General’s OPLM product is fixed for life, which provides customers with long-term certainty that their monthly payments will never increase. The product is available via intermediaries and on an advised basis.

This product is part of Legal and General’s commitment to innovation in the retirement lending market, it said. OPLM has also been designed to respond to the FCA’s request for the market to offer more choices for customers wanting to borrow in retirement.

Steve Ellis, CEO of Legal and General Home Finance, said: “Solving the interest-only challenge is just one area where we see lifetime mortgages as a potentially transformative solution for the lives of UK borrowers. Britain’s over-55s are currently sitting on over £1trn of property wealth – what could that money do for retirement outcomes, our housing market, and even our economy?

“Lifetime mortgages are already having a hugely positive impact on our society, and at Legal & General we are committed to raising awareness about the transformative effect these products could have for many of Britain’s retirees.

“Virgin Money shares our vision for customer focused innovation, so we’re delighted to announce our new partnership and offer our retirement lending products to an even wider audience of people looking for flexible later life lending solutions.”

Andrew Asaam, director of mortgages at Virgin Money, said: “We’re delighted to partner with Legal and General to offer choice and peace of mind to a number of our interest only end of term customers. Their Lifetime Mortgage range provides excellent options to help customers manage their finances effectively, including individuals who might be interested in accessing their property wealth to improve their standard of living in later life.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
‘Five years ago nobody charged fees, now clients expect to pay for a broker’ – the Platform Supper Club in Nottingham

For our next instalment of the Supper Club in association with Platform, Mortgage Solutions visited Hart’s Restaurant in Nottingham as...