Our Income Lifetime Mortgage has arrived

Now your clients can release money tied up in their home as monthly income over a fixed term to help boost their standard of living in retirement. The amount received each month and the interest rate are fixed from the outset, which consumers have told us gives them greater certainty and reassurance.

On this page you’ll find information and sales aids to support the launch of our Income Lifetime Mortgage.

Looking to contact your customers about the Income Lifetime Mortgage?

Here is an email template which you could use to help explain the benefits and risks of the product.

PDF file: Income Lifetime Mortgage email template PDF size: 259KB   

Please note that this email is for help only and you must ensure that you consider all legal and regulatory requirements before sending any email communications to your clients.

To help you present the Income Lifetime Mortgage to your clients, we’ve prepared a marketing pack you can download and customise. 

Introducing our new Income Lifetime Mortgage

Introducing our new Income Lifetime Mortgage video

Transcript: Introducing our new Income Lifetime Mortgage

Running time: 4.37 mins

On screen text: A little about Legal & General Home Finance

Steve Ellis, Chief Executive: I believe we are the market leading retirement lender, backed by a UK heritage brand.

As a relative newcomer to the market we come with no assumptions or legacy, and that enables us to be agile, to develop ideas and solutions quickly, and to work with customers, brokers and advisers to bring the great value, easy to access products to the market quickly.

On screen text: How is the retirement lending market changing?

Steve: The retirement lending market presents enormous opportunity for growth and innovation.

With demographics in its favour, the retirement lending market is seeing flexible, innovative ways to access housing wealth, which means that customers have many more options, and in turn, that means that retirement lending is fast becoming part of the mainstream conversation.

On screen text: What our research revealed

Amy Mulvey, Product Manager: As part of the development of the Income Lifetime Mortgage, we conducted consumer research which highlighted that there are a large number of people who are financially unprepared for retirement.

Often, people approaching retirement don’t know how much they’ll receive or even how much they’ll need to maintain a good standard of living. This means that customers can reach the point at which they retire, with insufficient income to enjoy the retirement they’ve worked so hard for.

When presented with the concept, many respondents saw a role for the product as one which can supplement or top-up their retirement income to allow them to continue to maintain a good standard of living.

On screen text: What customers want

Chris Buchanan, Product Director: Traditionally, customers released larger lump sums of equity, but over the last decade the market has gravitated towards flexible drawdown products that allow customers to release smaller amounts, as and when they need it.

Today however, many customers will have a shortfall in their retirement income, so we believe there is a real need for a lifetime mortgage that provides additional regular monthly income in retirement. After all you get paid each month during your working life, so why not expect your lifetime mortgage to pay you income each month too? 

On screen text: How it works

The Income Lifetime Mortgage provides customers with the discipline of a regular monthly income paid to them automatically each month for a fixed term. If their circumstances change later, they also have the option to stop taking the income at any time, but they can’t then restart the income later. 

Our research found that customers want certainty and security, particularly when it comes to interest rates. They want to know what they’re going to owe and when. And in view of this, the product offers a fixed interest rate, which is agreed at the outset for the life of the mortgage.

Another interesting point is that as money is released in smaller amounts more regularly, the roll-up of interest may be slower than more traditional Lifetime Mortgages where larger sums are released.

On screen text: What does this mean for our advisers?

Harold Pritchard, Distribution Director: For our brokers, Income Lifetime Mortgage is not about replacement sales, but about helping a whole new raft of customers that need a regular income flow.  

I always talk about a blended approach to retirement solutions. Income Lifetime Mortgage provides a fixed amount of income for a selected period of time, so it sits comfortably alongside any other investments or retirement provision a client might have and can be used to top up income when required.  

For some, taking income from their property first may have tax advantages, or, mean they are able to take a larger income from their annuity at a later date. 

On screen text: We’re here for our advisers and customers

Steve: We champion great customer value. And the Income Lifetime Mortgage is just one more example of our desire to make it easier for customers to unlock their lazy housing equity in order they that they can have a better retirement. 

Our role – the role of Legal & General – is to be there for our customers with innovative, great value solutions they can count on whatever retirement throws their way.