The lender noted that subject to regulatory approval for the move, it would form part of its Retail Retirement division.
“Reflecting the company’s commitment to tackling the challenges for the UK’s retirees, the move is a response to customer demand for a Legal & General branded advice service for its lifetime mortgage products,” the lender said.
As part of the expansion, Grant Hughes has joined Legal & General this week to work with strategy and commercial director Sara McLeish in taking the plans forward.
Hughes was formerly head of financial planning at Mercer and CEO of Jelf Financial Planning.
Since 2015, Legal & General Home Finance has offered customers access to advice on its lifetime mortgage products through Key, formerly Key Retirement, operating under the brand name The Retirement Lending Advisers.
L&G said this relationship will continue through any transition arrangements and beyond.
“Key Retirement Group will remain an important strategic partner for Legal & General Home Finance, and Legal & General will continue to work closely with Key and with all of Legal & General’s other intermediary partners to bring access to later life lending into the mainstream,” it added.
Match demand with distribution
Legal & General Retail Retirement CEO Chris Knight said: “As a generation of asset-rich, cash-poor retirees increasingly look to release their housing wealth, demand for lifetime mortgages will continue to grow.
“While we will continue to develop new and innovative products, we believe the next challenge for this market is to match demand more closely with distribution.”
Legal & General Retail Retirement strategy and commercial director Sara McLeish added that the business was looking forward to continuing close collaboration with Key and all its intermediary partners.
Key CEO Will Hale said: “Having worked closely with Legal & General for more than three years to provide their customers with access to their range of lifetime mortgage products, we are very happy to continue to support them whilst they explore options and confirm their plans.
“We look forward to continued close collaboration with Legal & General as we both work to ensure that customers who are looking for advice and support around later life lending decisions receive the best possible service.”