Legal & General (L&G) has reported significant growth in its lifetime and retirement interest-only mortgage lending, reflecting a broader trend in the mortgage market, particularly in later life lending.
What is driving the growth in lifetime mortgages?
The increase in lifetime mortgage lending at L&G can be attributed to strategic pricing changes implemented in the previous year. These adjustments have made products more appealing, although the overall lending volumes continue to be influenced by prevailing market conditions. L&G’s performance underscores the resilience of the mortgage market amidst economic fluctuations.
How does this impact borrowers and investors?
For borrowers, particularly those in later life, the growth in lifetime mortgages signifies greater access to financial products that can help manage retirement funding. This trend is essential for individuals looking to release equity from their homes to support their living expenses. Investors and brokers should note the rising demand for such products, as it may open new avenues for business and investment opportunities within the mortgage market.
What this means for the mortgage market
The overall performance of L&G, including increases in new business annual premiums and gross protection premiums, indicates a robust mortgage market. As lenders adapt to changing consumer needs, the trend towards flexible mortgage solutions is likely to continue, shaping the future market of the mortgage sector.
Frequently asked questions
What are lifetime mortgages?
Lifetime mortgages are loans secured against a property, allowing homeowners to release equity while retaining ownership. They are typically repaid upon the homeowner’s death or when they move into long-term care.
How can I find the best mortgage rates?
To find competitive mortgage rates, consider using a mortgage comparison tool or consulting with a mortgage broker who can provide tailored advice based on your financial situation.