Legal & General has lowered the starting rate on its optional payment lifetime mortgage, offering more flexible options for borrowers aged 55 and over seeking to unlock property wealth while maintaining repayment choices amid recent product updates.
Legal & General has cut the starting rate on its optional payment lifetime mortgage for new borrowers, widening the appeal of a product aimed at older homeowners who want to unlock property wealth while retaining the choice to make repayments.
The lender said customers aged 55 and over can receive a personalised discount of between 0.01% and 1%, with the lower rate fixed for the full term of the loan, including any future drawdowns, provided payments are maintained during the first 15 years. That means borrowers can continue to benefit from the reduction if they take additional money later, so long as they stick to the repayment requirement at the outset.
The latest move builds on a series of changes by Legal & General Home Finance to make its lifetime mortgage range more flexible. In 2023, the firm added lower loan-to-value bands to its flexible and optional payment products and later increased the number of partial repayments customers could make each year. Those changes were pitched as a way to give borrowers more control over borrowing costs and repayment patterns.
Legal & General is also extending support for joint borrowers facing major life changes. If one borrower dies or moves into long-term care, the lender will allow missed interest payments for a limited period. Mike Batty, managing director of home finance and product and strategy director for retail retirement at Legal & General, said the firm had used customer feedback and market analysis to shape the update, adding that it wanted a product that could adapt as circumstances change.
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