A lifetime mortgage from Legal & General Home Finance will now be one of the options offered, where appropriate, to Santander mortgage customers who are facing repayment shortfalls.
The arrangement will also help existing Santander mortgage customers who want to release equity from their homes.
Advice will be provided by Key Retirement who also provides lifetime mortgage advice to Legal & General customers.
Legal & General entered the retirement lending market in 2015 and has completed over £400m of lifetime mortgage lending to date.
Miguel Sard, Managing Director Mortgage Division at Santander UK, said: “Since joining the lifetime mortgage market, Legal & General has shown commitment to developing solutions that enable cost effective ways of borrowing into retirement. This new partnership promotes flexibility and choice for existing, interest only customers who are approaching retirement and want to find a mortgage solution that suits both their lifestyle and their financial position.”
Bernie Hickman, Chief Executive Officer, Legal & General Home Finance, added: “This is a really positive move for the retirement lending market that will see more customers realising the benefits of releasing equity to make their retirement better.
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 the mortgage repayments required to do this. 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."
