Legal and General

Legal and General are a household name, renowned for their investment and insurance products. They joined the lifetime mortgage market in 2015 and have quickly grown to be one of the leading and most recognised lenders. They currently provide two forms of later life mortgages:

L&G Flexible Lifetime Mortgages

The Legal & General Home Finance lifetime mortgage range is broken down into Interest Roll-Up and Optional Payment products. The difference between the two products is in how the interest charged by Legal & General is managed by the homeowner.

The Interest Roll-Up plan allows for the interest charged by the lender to roll-up without any committed payments from the homeowner. Interest would therefore roll up and compound. However, optional ad-hoc or regular payments can still be made upto 10% of the original amount borrowed.

In contrast, the Optional Payment plan requires regular committed monthly payments to L&G, the level of which is determined by the borrower and can be anywhere upto 100% of the interest charged. These regular monthly payments can be stopped at any time in the future.

All L&G plans are offered on a drawdown basis which enables you to borrow an initial amount (£10,000 minimum) and the remaining cash facility is available in the future, as and when required.

L&G Retirement Interest Only Mortgages (RIOs)

As demand for greater choice in the later life lending space grows, L&G have a RIO mortgage that offers a higher potential maximum loan-to-value of 60%. This compares more favourable to the maximum you could release on a lifetime mortgage.

There are three versions of its RIO mortgage to choose from dependent upon its purpose - Remortgage, Purchase or Remortgage and cashback.

The RIO range of mortgages all come with fixed interest rates for life - hence offer the certainty of knowing the future monthly interest only payment.