Legal & General and Santander have agreed a five year deal which will see L&G offer lifetime mortgages to Santander customers.
The arrangement has the potential to help existing Santander mortgage customers that are reaching the end of their mortgage term who may have a shortfall in repaying the capital owing on their interest only mortgage.
Miguel Sard, managing director mortgage division at Santander UK, said: “Since joining the lifetime mortgage market, Legal & General has shown commitment to developing solutions that enable cost effective ways of borrowing into retirement. This new partnership promotes flexibility and choice for existing, interest only customers who are approaching retirement and want to find a mortgage solution that suits both their lifestyle and their financial position.”
Bernie Hickman, chief executive officer, Legal & General Home Finance, added: “This is a really positive move for the retirement lending market that will see more customers realising the benefits of releasing equity to make their retirement better. We are particularly excited about this new partnership, which builds on Legal & General’s long-standing relationship with Santander and we are delighted that they have chosen us as their partner.
“Thousands of borrowers need to find a way to pay back the capital on their interest-only mortgage when their term ends and often, if they are retired, they don’t have the income to support the mortgage repayments required to do this. Legal & General is confident that our Lifetime Mortgages can play a crucial role in tackling what is a UK wide problem, broadening the range of options that are available to interest-only customers as they reach retirement.
“Advice will be provided by the leading adviser in the Lifetime mortgage market, Key Retirement who also provides lifetime mortgage advice to Legal & General’s own customers.”
Legal & General entered the retirement lending market in 2015 and, to date has completed over £400m of Lifetime Mortgage lending to thousands of retirees.