Cash-strapped pensioners are offered a new kind of loan by Legal & General


Cash-strapped pensioners are offered a new kind of loan by Legal & General to refurbish dilapidated housing

  • L&G has launched a lifetime mortgage for older homeowners 
  • The money will be paid back after the owner has died, with interest 
  • Bosses have tested the scheme in cities such as London and Birmingham

City & Finance Reporter for the Daily Mail

Pensioners stuck in a dilapidated house they cannot afford to fix are being offered a new kind of loan by savings firm Legal & General.

L&G has launched a lifetime mortgage for older homeowners to borrow cash against the value of their property to refurbish it. 

The money will be paid back after the owner has died, with interest, using proceeds from the sale of the house.

Pensioners stuck in a dilapidated house they cannot afford to fix are being offered a new kind of loan by savings firm Legal & General

Pensioners stuck in a dilapidated house they cannot afford to fix are being offered a new kind of loan by savings firm Legal & General

Pensioners stuck in a dilapidated house they cannot afford to fix are being offered a new kind of loan by savings firm Legal & General

Bosses have tested the scheme in cities such as London, Oxford and Birmingham, working with charities to identify vulnerable people who need the money urgently to stay in their own home.

The company’s lifetime mortgage department, which sells loans to a wide range of customers looking to free equity in their properties, did £500million of business in the first six months of 2018, up 23per cent on a year earlier.

Chief executive Nigel Wilson said as much as £1.5trillion of wealth is locked up in older people’s houses, and this could be spent elsewhere.

He said around 1m retired couples have no children, and saving their property for inheritors will matter less to them.

L&G saw half-year profits slip 19per cent to £942million compared with the same period in 2017, but raised the interim dividend by 7per cent to 4.6p a share.  

Advertisement



Source link