In its half year results for 2022, published today, L&G noted that the longer term outlook for the lifetime mortgage market was “attractive”.
It pointed out that currently housing equity owned by the over 55s is valued at £2.6trn, yet at present only £5bn per year is being released through the lifetime mortgage market.
The firm said it is continuing a strong focus on the traditional lifetime mortgage market, and increasingly working on the ‘wealth’ sector within the market, pointing out that “those with higher value properties increasingly see the benefit in lifetime mortgages when planning the distribution of their estate to future generations.”
Lifetime and retirement interest only mortgage advances for the first half of the year reached £338m, down from £414m in the first half of 2021.
It continued: “However, the lifetime mortgage market is becoming more competitive, and we will maintain pricing discipline at the expense of volumes if required.”
The results also revealed that the L&G Mortgage Club facilitated £50bn of mortgages, an increase of six per cent from the £47bn lent in the same period of last year. The firm said that it is the largest participant in the intermediary mortgage market, and is now involved in one in five UK mortgage transactions.
The Legal & General Surveying Services business facilitated over 276,000 surveys and valuations in the first half of the year, up from 263,000 in the same period last year.
Across the business as a whole, L&G’s operating profit has increased from £1,079m to £1,160m, while its profit after tax has moved from £1,065m to £1,153m.
Sir Nigel Wilson, group chief executive, said L&G enjoyed a “good start to the year”.
He added: “We are committed to providing financial security for our customers and colleagues in a tough economic climate and remain confident in our ability to grow profits sustainably and at attractive returns over the long-term.”
