22 June 2022

Providers highlight importance of family input when making decisions on family home

Co-op Insurance, has joined forces with leading financial services provider, Legal & General, to offer later life mortgage options to homeowners over the age of 55.

Recent figures from the Equity Release Council* show that the number of homeowners releasing equity from their property in the first quarter of 2022 rose by over 20% to a new quarterly high of 23,395, helping older homeowners fulfil their later living needs.

The new launches, which form part of a trial, will offer two options:

  • Lifetime mortgages – a type of equity release enabling homeowners to take a loan secured against their home whilst still owning it and living in it, giving them the option to pay all, some or none of the interest. The loan is usually repaid when the last borrower passes away or moves out of the home into long-term care. The lifetime mortgage carries a full ‘no negative equity’ guarantee, meaning that homeowners or their estates will never owe more than their home is worth.

  • Retirement interest only (RIO) mortgages – a loan based on the value of a home available to people aged over 55. It can be used for most purposes, including paying off an existing mortgage. As the interest is paid each month the amount owed doesn’t increase over time and the loan is paid off when the last remaining borrower moves into long-term care or dies.

Co-op Insurance customers who want to find out if the products are right for them will be put in touch with specially qualified advisers at Legal & General Financial Advice.

The products are fully regulated by the Financial Conduct Authority (FCA) and, as Legal & General Home Finance and Legal & General Financial Advice are members of the Equity Release Council, they adhere to the council’s rules and safeguards to protect homeowners.

Charles Offord, managing director, Co-op Insurance, said: “We’re delighted to be joining forces with Legal & General, trusted market leaders of equity release products, to launch these new later-life lending products. Whether still in employment or already retired, we’re committed to helping inform the over 55s as to their financial options so that they can improve their quality of life and ultimately have the life they’ve worked so hard for.

“As the cost of living continues to rise, we know many people don’t want to sell their family home to access wealth that has accrued in their bricks and mortar over the course of a lifetime. Our new products offer another way to unlock this cash so homeowners can enjoy their later years or help out children and grandchildren at life’s key milestones, without the hassle of selling or downsizing. Legal & General is the ideal partner for us, as their expert advisors do not work to commissions and are committed to getting the right outcome for customers by ensuring all family members are involved in key decisions.”

Craig Brown, CEO Legal & General Home Finance, said: “Our new partnership with Co-op Insurance will help more people over 55 to understand how our range of later life lending products can allow them to make the best use of the equity they have tied up in their property, whether that’s to support younger family members or to fulfil their own lifestyle aspirations.”

People interested in the new later-life lending packages from Co-op Insurance and Legal & General can visit Lifetime Mortgages | Equity Release | Co-op (coop.co.uk) for more information.

-ENDS-

*Figures from Equity Release Council report

For media queries please contact:

• Aimi.mcneill@coop.co.uk / 07739 657585 • Claire.Byrd@landg.com  / 07385 347 769

About Co-op Insurance About Co-op Insurance: Co-op Insurance is part of the Co-op, one of the world’s largest consumer co-operatives with interests across food, funerals, insurance, legal services and health. It has a clear purpose of championing a better way of doing business for you and your communities. Owned by millions of UK consumers, the Co-op operates 2,600 food stores, over 1,000 funeral homes and it provides products to over 5,100 other stores, including those run by independent co-operative societies and through its wholesale business, Nisa Retail Limited. It has more than 63,000 colleagues and an annual revenue of over £10 billion.

About Legal & General Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.  * at 31 December 2021

About Legal & General Retail As of 1st January 2022, Legal & General Retail Retirement and Legal & General Insurance (our two retail businesses) have been combined into one division, Legal & General Retail, to enable us to better serve the needs of our retail customers.  Legal & General Retail helps protect the lives and futures of our customers; the division covers the savings, protection and retirement needs of our c12 million retail policyholders and workplace members.  In 2021, we wrote £957 million of annuity premiums, and issued £848 million of Lifetime Mortgages and Retirement Interest Only Mortgages. Our Workplace pension platform served 4.4 million members, while in the UK we paid out a total of £1,133.8 million in insurance claims.