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Legal and General Home Finance enhances PTLM eligibility

  • 28/05/2024
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Legal and General Home Finance enhances PTLM eligibility
Legal and General Home Finance has removed the need for one borrower to be employed when applying for a payment term lifetime mortgage (PTLM), in order to widen it to more people.

This change has been made because of adviser feedback. Borrowers who are not employed must have a sustainable income to be eligible for the product, including pensions, maintenance payments, rental income or income from secure investments. 

Legal and General Home Finance launched the PTLM in November to meet the needs of borrowers who fell between the gap of a standard mortgage and equity release. 

It enables borrowers aged 50 and above to access property wealth and offers a tax-free cash lump sum in return for fixed monthly interest repayments up until retirement or age 75, whichever comes first. If they are already retired, the payment term can last up to the oldest borrower’s 75th birthday.

Legal and General Home Finance will lend up to 69.9% loan to value (LTV), which is higher than the maximum LTV available in its existing later life mortgage range. 

Lorna Shah, managing director of Legal and General Retail Retirement, said: “We are always listening to adviser feedback to ensure the best outcomes for people looking to benefit from accessing their property wealth. That’s why we’re improving the accessibility of our PTLM product for borrowers in retirement, whose individual needs are not currently being well-served in the existing market. 

“While not suitable for everyone, lifetime mortgage solutions can be an important consideration as part of a holistic approach to financial planning. For homeowners weighing up their choices, it’s worth speaking to a mortgage broker or financial adviser to be clear about all the options available to them.” 

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