MortgagesAug 26 2016

L&G scraps arrangement fees on some lifetime mortgages

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L&G scraps arrangement fees on some lifetime mortgages

Legal & General has removed the arrangement fee on their flexible and lump sum lifetime mortgage products.

The deal, which will be available until further notice, will save customers nearly £600 in fees.

L&G has also made further reductions to its lifetime mortgage rates across its whole product range.

Steve Ellis, chief operating officer of L&G Home Finance, said: “The decision to remove the arrangement fee for the majority of our lifetime mortgages and further reducing the interest we charge for borrowing, ensures that we remain at the forefront of providing ever improving value for consumers.

“We hope that these changes will make it easier for more and more people to consider how a lifetime mortgage could help to improve their retirement.”

Earlier this month L&G launched the first sub-4.5 per cent fixed rate roll-up lifetime mortgage product in the market - the premier flexible lifetime mortgage.

This product’s rate has now been reduced even further to 3.71 per cent.

The flexible lifetime mortgage now has an AER of 3.89 per cent, the lump sum product is being reduced by 0.25 per cent to 5.19 per cent.

An arrangement fee remains in place for L&G’s premier flexible lifetime mortgage, but this was recently reduced from £4,999 to £1,999.