Legal & General hits £200m Lifetime Mortgage Target in 2015
Legal & General is pleased to announce that lifetime mortgage lending reached £201m in 2015, hitting the £200m 2015 target for lifetime mortgages with £99m of lending in its fourth quarter of the year. Legal & General completed its acquisition of New Life Home Finance Limited in April 2015 and has since rebranded it as Legal & General Home Finance, launched an extended product range and enhanced the operational capability to deliver higher volumes with great customer service. The £99m of lending in the final quarter of 2015 gave Legal & General a 22% market share demonstrating the progress from a 1% market share in the first quarter of 2015 immediately prior to acquisition.
The Equity Release Council recently announced that lifetime mortgage lending reached a new record high in 2015, at £1.6 billion, up 16% on the prior year. The number of people over 60 years old is expected to grow by 6.3 million in the next 20 years, coupled with an estimated £1.3 trillion of housing equity currently owned by the over 60s in the UK, makes the long-term growth characteristics of this market very strong.
Bernie Hickman, Chief Executive Officer, Legal & General Home Finance said:
“I’m delighted with the start Legal & General Home Finance has made in the lifetime mortgage market in 2015. The market has experienced 20% compound annual growth since 2011, and an ageing population adds further potential growth in years to come. With funding from our annuity portfolio we have been able to offer customers competitive interest rates and great product features, which in turn make lifetime mortgages even more attractive for customers wanting to release equity without moving from their homes. Lifetime mortgages further diversify our high quality annuity asset portfolio as we increase our exposure to direct investments.”
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For further information, please contact:
Head of Investor Relations
020 3124 2088
Investor Relations Manager
020 3124 2047
Corporate Affairs Director
020 3124 2090
Head of Group Corporate Communications
020 3124 2095
Notes to editors:
Legal & General Home Finance Ltd
Acquired by Legal & General in April 2015, Legal & General Home Finance is a UK-based provider of lifetime mortgage products. It was founded in 2003 as New Life Home Finance Ltd to manufacture and provide lifetime mortgages designed to assist homeowners to raise cash against the security of their property while continuing to own and live in their homes.
Legal & General Home Finance has full permission by the Financial Conduct Authority (FCA) to administer regulated mortgages from completion to redemption and the business now operates as a full service provider in the retirement market by retailing, underwriting, completing and administering lifetime mortgages. Its products are retailed exclusively through a fully authorised and regulated panel of more than 700 intermediaries which meet stringent criteria. All of its lifetime mortgages comply with the Equity Release Council Statement of Principles.
Legal & General Home Finance is a member of the Council of Mortgage Lenders (CML), is authorised and regulated by the Financial Conduct Authority (FCA) and is also a member of the Equity Release Council, the equity release industry trade body.
For more information on Legal & General Home Finance, please see https://www.landghomefinance.com/
Legal & General Group Plc
Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £15.9bn (as at 31st December 2015) and is responsible for investing £728bn worldwide (as at 30th September 2015) on behalf of investors, policyholders and shareholders. We have over seven million customers in the UK for life assurance, pensions, investments and general insurance plans and over one million customers in the US who rely on us for life assurance. In 2014, Legal & General's operating profit (on the IFRS basis) was £1,275m and earnings per share were 16.70p for the period, an increase of 10% for both respectively.
For more information on Legal & General, please see http://www.legalandgeneralgroup.com/
This announcement may contain certain forward-looking statements relating to Legal & General, its plans a