5th Feb 2016 09:46
LONDON (Alliance News) - Legal & General Group PLC on Friday said it has hit its 2015 target for lifetime, or equity release, mortgage lending.
The FTSE 100 financial services group said lifetime mortgage lending reached GBP201.0 million in 2015, hitting the GBP200.0 million 2015 target, with GBP99.0 million of lending in its fourth quarter of the year. Lifetime mortgage lending allows people to generate income in retirement from the equity in their homes.
The GBP99.0 million of lending in the final quarter of 2015 gave Legal & General a 22% market share, the company said, up from 1% in the first quarter of that year immediately prior to acquisition of New Life Home Finance Ltd. That acquisition was later renamed.
"I'm delighted with the start Legal & General Home Finance has made in the lifetime mortgage market in 2015. The market has experienced 20% compound annual growth since 2011, and an ageing population adds further potential growth in years to come," Bernie Hickman, chief executive, Legal & General Home Finance, said.
"With funding from our annuity portfolio we have been able to offer customers competitive interest rates and great product features, which in turn make lifetime mortgages even more attractive for customers wanting to release equity without moving from their homes. Lifetime mortgages further diversify our high quality annuity asset portfolio as we increase our exposure to direct investments," Hickman added.
Shares in Legal & General Group were down 0.9% at 214.20 pence on Friday morning.
By Samuel Agini; [email protected]; @samuelagini
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