Legal & General targets £100m equity release lending
The insurance provider announced the acquisition of equity release lender NewLife earlier this year and now expects to write significant amounts of business.
The NewLife deal is expected to complete in the first half of 2015 and will signal Legal & General’s first foray into the lifetime mortgage market.
Legal & General said it expected this level of lending would increase above £100m in subsequent years.
Nigel Waterson, chairman of the Equity Release Council trade body, welcomed the news and said the market would continue to grow.
“There is already a strong momentum in the equity release market, and today’s comments from Legal & General that it expects to write over £100m of business this year – and more in future – is another sign that this trend will continue,” he said.
“More people are tuning into the fact that unlocking even a small portion of their housing wealth can make a major difference to their quality of life beyond the age of 55.”
Waterson said new providers increased competition and standards in the sector.
“Recent years have seen new providers, products and flexibilities emerge alongside the existing safeguards, protections and high standards of advice,” he added. “We look forward to more of the same in 2015 as the industry responds to meet growing demand.”