L&G announces lifetime mortgage partnership with Twenty7Tec

"Despite the continued success of lifetime mortgages, the retirement lending and mainstream mortgage markets remain largely separate."

The partnership makes Twenty7Tec the first sourcing system provider to allow advisers to compare standard residential, second charge and equity release products alongside one another in a single dedicated system.

L&G says the move is part of a goal to improve intermediary awareness and access to lifetime mortgage products.

The news follows the recent launch of Legal & General’s Optional Payment Lifetime Mortgage, which offers customers an interest-only solution for life and which requires no affordability assessment or capital repayment strategy.

OPLM will be included on the new system, alongside Legal & General’s full range of lifetime mortgages.

Steve Ellis, CEO of Legal & General Home Finance, said: “Lifetime mortgages are undoubtedly becoming an ever more popular option for retirement, and it’s no secret more people are looking to access their property wealth in later life. However, despite the continued success of lifetime mortgages, the retirement lending and mainstream mortgage markets remain largely separate. From regulatory rules to advice routes and qualifications, the market operates in silos. Even how advisers source their products is different, and that needs to change.

“Whether it’s the FCA’s rules on Retirement Interest-Only that have the potential to bring the markets closer together, or innovations such as our hybrid OPLM product, we need to break down these silos and make sure later life customers are aware and have access to the right products, irrespective of market polarisation.

“We see this partnership with Twenty7Tec and its Mortgage Source system as another step in this direction, bringing later life lending products onto a recognised and leading residential mortgage sourcing platform. It isn’t the ultimate answer, but it’s a small step forward and one of many that we at Legal & General intend to make on our journey this year. Our aim is for one mortgage market and giving mortgage brokers more sourcing visibility of later life lending products is just another way we’re working towards achieving that goal.”

Phil Bailey, director of intermediary solutions at Twenty7Tec, added: "Today we are delighted to have taken the concept of a truly 'blended' sourcing system and made it a reality for our 6500 intermediary users. MortgageSource can now accurately display lifetime mortgages for clients aged 55+, while continuing to utilise the same detailed criteria our users have become accustomed to for 1st & 2nd charge products. Over the remainder of this year we will be on-boarding additional lifetime lenders into the system to complete the panel. Built with future products and flexibility in mind, MortgageSource is providing the intermediary with everything they need to research the market.

"It has been a pleasure to work with Legal & General Home Finance over the past year. A true pioneer in their field. Their appetite and drive for innovation in this market is matched only by ourselves."