It removes the requirement for one borrower to be employed when applying for PTLM
Later life lender Legal & General Home Finance has enhanced its Payment Term Lifetime Mortgage (PTLM) to better serve borrowers whose needs are not being met in the current retirement lending market.
In response to adviser feedback, the lender has removed the requirement for one borrower to be in full-time employment. Borrowers who are no longer employed must have a sustainable income from pensions, maintenance payments, rental income, or secure investments to meet the minimum eligibility criteria.
The changes, the lender said, benefit borrowers unable to get a term extension on their interest-only residential mortgages or other interest-only mortgages. They also assist those looking to fund home improvements, gift loved ones, or purchase property.
The PTLM is among several innovations Legal & General Home Finance has introduced recently. The product allows borrowers to access property wealth earlier, from age 50 rather than 55. It offers a tax-free cash lump sum in exchange for fixed monthly interest repayments until retirement or age 75, whichever comes first.
For those already retired, the payment term can last up to the oldest borrower’s 75th birthday. PTLM customers can borrow up to 69.9% loan-to-value (LTV), higher than the LTVs in Legal & General’s existing later life mortgage range.
“We are always listening to adviser feedback to ensure the best outcomes for people looking to benefit from accessing their property wealth,” said Lorna Shah (pictured), managing director at Legal & General Retail Retirement. “That’s why we’re improving the accessibility of our PTLM product for borrowers in retirement, whose individual needs are not currently being well served in the existing market.
“While not suitable for everyone, lifetime mortgage solutions can be an important consideration as part of a holistic approach to financial planning. For homeowners weighing up their choices, it’s worth speaking to a mortgage broker or financial adviser to be clear about all the options available to them.”
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