Mortgages  

Legal and General completes equity release firm deal

Legal and General completes equity release firm deal

Legal and General has today (1 April) completed the acquisition of New Life Home Finance for a consideration of £5m, following Financial Conduct Authority approval.

The proposed acquisition was first announced in February this year. At that time, Legal and General also entered into a funding agreement to be the sole funder of new lifetime mortgages originated by Newlife.

Legal and General stated that the mortgage funding will provide another source of direct investment assets to back its annuity liabilities.

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Newlife was founded in 2003 to manufacture and provide lifetime mortgages designed to assist homeowners to raise cash against the security of their property, whilst continuing to own and live in their homes.

Kerrigan Procter, managing director at L&G Retirement, said: “This transaction means Legal and General can participate fully in the lifetime mortgage market which will also provide another attractive source of direct investment assets to back Legal and General annuity liabilities.

“We have been pleased with the number of applications Newlife has received since we became the sole funder on 9 February 2015 and the positive response we have had from lifetime mortgage advisers to our entry into the market.”

ruth.gillbe@ft.com