Legal & General buys equity release firm Newlife in £5m deal

Legal & General has entered the equity release market with a £5m acquisition, writes Jenna Towler

Legal & General is to enter the equity release market with the purchase of provider New Life Home Finance (Newlife) for £5m.

Newlife was founded in 2003 and providers lifetime mortgages which allow homeowners to raise cash against property security.

L&G said it would become the sole funder of new lifetime mortgages originated by Newlife.

It said mortgage funding would provider another source of direct investment assets to back L&G annuity liabilities.

The provider said the acquisition is likely to complete in the first half of the year depending on regulatory approval.

L&G individual retirement business managing director Bernie Hickman said: “Over 60s in the UK have nearly £1.3trn in housing equity and we believe lifetime mortgages will become an increasingly popular way for many people to supplement their retirement income.”

He said L&G had about £40bn of annuity assets, meaning it had “considerable capacity” to provide future funding for lifetime mortgages.