The firm purchased lifetime mortgage provider Newlife in April 2015 and has announced growth plans for the next 18 months.

It said lending will exceed £100m in 2015 and will grow ‘significantly’ next year.

Over 60s in the UK own £1.3trn of housing equity and Legal & General said more people would turn to equity release as house prices increase and people need greater help to fund their retirement.

The firm said it hopes its entrance would increase competition and expected the lifetime mortgage market to grow to £2.3bn by 2019.

Bernie Hickman, managing director of 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.”

Dean Mirfin, technical director of Key Retirement Group, welcomed the new entrant to the market.

“Legal & General have brought their expertise to bear in this increasingly important market,” he said.

“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.”