Legal and General Home Finance enhances PTLM eligibility
2 min read
Legal and General Home Finance has removed the need for one borrower to be employed when applying for a payment term lifetime mortgage (PTLM), in order to widen it to more people.
This change has been made because of adviser feedback. Borrowers who are not employed must have a sustainable income to be eligible for the product, including pensions, maintenance payments, rental income or income from secure investments.
Legal and General Home Finance launched the PTLM in November to meet the needs of borrowers who fell between the gap of a standard mortgage and equity release.
It enables borrowers aged 50 and above to access property wealth and offers a tax-free cash lump sum in return for fixed monthly interest repayments up until retirement or age 75, whichever comes first. If they are already retired, the payment term can last up to the oldest borrower’s 75th birthday.
Legal and General Home Finance will lend up to 69.9% loan to value (LTV), which is higher than the maximum LTV available in its existing later life mortgage range.
Lorna Shah, managing director of Legal and General Retail Retirement, said: “We are always listening to adviser feedback to ensure the best outcomes for people looking to benefit from accessing their property wealth. 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.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
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