The Later Life Mortgages Portal is currently being rolled out to advisers who are being invited to sign up in phases.
L&G says the portal will increase the automation of the equity release application process. Advisers will be able to produce a Key Facts Illustration and track the progress of the mortgage application online.
Products such as the flexible lifetime mortgage and optional payment lifetime mortgage with a choice of either fixed or gilt-linked early repayment charges will be accessible alongside the RIO option.
L&G’s intention to offer a fixed penalty equity release loan was first reported by Mortgage Solutions in May.
Mortgage Solutions understands that the structure for the fixed early repayment charge is: years one to five/nine per cent, years six to eight/eight per cent, year 9/seven per cent, year ten/six per cent, year 11/five per cent, year 12/four per cent, year 13/three per cent, year 14/two per cent, year 15/one per cent and in year 16 there is no penalty.
Advisers welcomed the news that L&G was offering more choice, however, the penalty structure is less competitive than products offered by lenders such as Canada Life and More2Life which are shorter and cheaper.
Claire Singleton, chief executive of Legal & General Home Finance, said: “As the lifetime mortgage market continues its lockdown recovery, operational efficiencies created by technology will play an increasingly important role in helping advisers achieve the best outcome for customers.
“We have created a portal that will make a real difference to the advice process, saving advisers time, offering more choice and greater flexibility.”
Singleton said L&G had introduced fixed early repayment charges to give borrowers more choice and certainty over the penalty they will have to pay should they need to repay the loan early.