Legal & General's (L&G) lifetime mortgage lending reached £201m ($294m) in 2015, surpassing its target of £200m thanks to a surge in fourth-quarter activity.
Legal & General acquired New Life Home Finance in April 2015 and has since rebranded it as Legal & General Home Finance. The company provides mortgages that are designed to assist homeowners, typically retired people, to raise cash against the security of their property while continuing to own and live in their homes.
The £99m of lending in Q4 gave Legal & General a 22% market share, a progress from its 1% market share in Q1 before the acquisition.
According to the Equity Release Council, lifetime mortgage lending reached a new record high in 2015, at £1.6bn, up 16% on the prior year. The Council expects growth to continue. Much of the extra £230m coming to market in 2015 was provided by insurers, notably Legal & General and Aviva.
"The market has experienced 20% compound annual growth since 2011, and an ageing population adds further potential growth in years to come... Lifetime mortgages further diversify our high quality annuity asset portfolio as we increase our exposure to direct investments," said Bernie Hickman, CEO at Legal & General Home Finance.
Channels:Managers
People:Bernie Hickman