Press releases

Legal & General launches own brand Lifetime Mortgage products

Bernie Hickman, Managing Director, Individual Retirement, LGR

Legal & General announced today it intends to become a leading provider of Lifetime Mortgages, as it launches Legal & General branded Lifetime Mortgage product range with market leading interest rate and feature. This follows the acquisition of specialist equity release provider Newlife in April 2015. Lending is expected to exceed £100m in 2015 and to continue to increase significantly in 2016 as many more customers benefit from competitive interest rates, flexible products and excellent service.

The Lifetime Mortgage market has shown strong growth recently, and looks set to become an increasingly popular way for consumers to benefit from the equity tied up in their homes. This will enable them to release much needed funds to provide for their retirement, particularly as people are now living longer, the cost of later life care is growing and property values continue to rise in real terms -

  • The UK's population is ageing and the number of elderly people is expected to grow by 5.5 million between 2010 and 2030*
  • The equity release market grew by 29% in 2014*
  • The Lifetime Mortgage market is forecast to grow to over £2.3bn by 2019*, and
  • Over 60s in the UK own nearly £1.3 trillion of housing equity giving plenty of scope for market growth

Legal & General is making sustained investment in the Lifetime Mortgage business to ensure that an innovative range of products is continuously developed and that the service supporting them becomes market leading.

Bernie Hickman, Managing Director, Individual Retirement at Legal & General said:
"The launch of Legal & General Lifetime Mortgages marks an important and significant point in the evolution of our retirement business. In the UK there is a clear need for housing to play a more central role in helping create better outcomes for more people, particularly as they progress deeper into retirement. The market is growing and we want to be known as a brand that helps more and more people release the money tied up in their property."

Legal & General believe that its entry into the market will stimulate the supply of competitive products, something that has been welcomed and endorsed by one of the leading specialist retirement intermediaries, Key Retirement Group.

Dean Murfin, Technical Director, Key Retirement Group commented:
"Legal & General have brought their expertise to bear in this increasingly important market. It's early days but so far we have been impressed with both their offering and their commitment to bringing a range of new products to the market coupled with a service proposition that will make life easier for both us and our clients."

Legal & General has recently launched its research study into the Last Time Buyers' market, with the Centre for Economics and Business Research (Cebr). This has identified 10 important steps to unblocking the Last Time Buyer market which aim to help boost supply and offer diversity of options available to older people.


Legal & General Home Finance (a trading style of Newlife Mortgages Limited which is a wholly owned subsidiary of the Legal & General Group), offers competitively priced Lifetime Mortgage products that are designed to help homeowners to release cash from their property whilst continuing to own and live in their own homes.

Legal & General Home Finance has recently started working closely with Eversheds and Legal & General Surveying Services (LGSS), as well as making significant improvements to the administration system. These improvements to conveyancing, valuations and processes, coupled with an increase in the number of employees within the business has resulted in quicker processing times and dedicated support for advisers.
Mintel Report – Equity Release Schemes UK, May 2015

Legal & General is one of the UK's leading financial services companies and one of the UK's top 50 companies in the FTSE 100 Index. Legal & General Retirement has been an active participant in the insurance solution pension de-risking market for nearly 30 years. Legal & General provides annuities to over 750,000 current pensioners and over 170,000 deferred pensioners and manages £45.6 billion of annuity assets as at 31 March 2015.

The information contained in this release is intended solely for journalists and should not be used by consumers to make financial decisions.

Legal & General Assurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Legal & General Assurance Society Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England Number 166055.

Free up Housing Stock – report into the Last Time Buyer market - To read the report go to: Last time buyers:
A report (PDF: 1124KB)
(or download from

Ten steps to unlocking the LTB market:

  1. Political support: Government needs to focus on this issue and commit to supporting the expanded provision of age-specific housing to serve the needs of older people. This requires a consistent focus that is then reflected in housing, planning and health & social care policy.
  2. An integrated policy approach: Policy committees need to recognise that, when done well, retirement housing can connect residential infrastructure with the health & social care system, providing major benefits for both.
  3. Diversity of tenures: The majority of retirement housing is sold to occupiers on a leasehold basis. Increased volumes of homes across all tenures, including freehold, shared equity and rented options, would allow the system to cater to a wider variety of needs and offer flexibility as people's needs change in later life. Moreover, a thriving new build retirement living sector would remove some of the stress cited as a main reason for not moving. Part-exchange of current homes would also remove the stress of selling, as well as saving estate agents costs.
  4. Greater supply in the mid-market: At the moment, provision of retirement housing is concentrated amongst affordable housing providers and a small number of premium private sector operators. This leaves much of the market relatively underprovided with good quality stock.
  5. Urban not rural: LTBs require well designed, affordable space that is close to family, friends and facilities. This emphasis on connectivity and amenity suggests that the bulk of demand will be in urban rather than rural locations. Provision, and the public policy environment, must accommodate this.
  6. Tax relief: We need to reduce transactional costs to incentivise right-sizing across the whole market. The Chancellor's changes to stamp duty should be welcomed and could be extended further, to offer full relief on all home purchases by those over a certain age. The fiscal impacts would be offset by a higher level of turnover, as stamp duty is received on the purchases of older people's homes by younger people that would otherwise not take place. Another tax treatment that should be considered is a larger New Homes Bonus for retirement homes, over and above the current incentives offered. A council tax holiday for new retirement homes shou