12th Jul 2016 09:20
LONDON (Alliance News) - Life insurer and investment manager Legal & General Group PLC on Tuesday said it has inked a five-year agreement with Spanish bank Santander to offer L&G's Lifetime Mortgages to Santander customers.
L&G said the agreement will provide an option to existing Santander mortgage customers reaching the end of their mortgage term with a shortfall in repaying the capital owed on their interest-only mortgage. In addition, it will be available to other Santander mortgage customers thinking about releasing equity from their homes to help fund their retirement.
"Thousands of borrowers need to find a way to pay back the capital on their interest-only mortgage when their term ends and often, if they are retired, they don't have the income to support mortgage repayments required to do this," said Bernie Hickman, chief executive of L&G Home Finance.
"Legal & General is confident that our Lifetime Mortgages can play a crucial role in tackling what is a UK-wide problem, broadening the range of options that are available to interest-only customers as they reach retirement," he added.
L&G shares were up 3.2% to 189.50 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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