Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

L&G Reports 23% Year-on-Year Growth in Lifetime and RIO Mortgage Lending

Legal & General (L&G) has reported a 23% year-on-year increase in lifetime and retirement interest-only (RIO) mortgage lending for the first half of 2026. Advances in these products rose to £128 million, up from £104 million in the same period of the previous year.

The insurer attributed the growth in lending volumes to pricing changes introduced during the second half of 2025. However, L&G noted that customer demand for these products remains sensitive to prevailing market conditions.

Lifetime and RIO mortgages are part of L&G’s Retail Retirement division, which generated £1.144 billion of new business in the first six months of 2026. Of this, lifetime and RIO mortgage advances contributed £128 million.

L&G’s loan book for lifetime mortgages stood at £5.868 billion as of 30 June 2026, which is lower than the £6.072 billion recorded at the same point in 2025. The group values its lifetime mortgage assets using discounted cash flow models, which include the cost of the No Negative Equity Guarantee (NNEG). The NNEG ensures that borrowers never owe more than the value of their property upon sale.

L&G stated that its lifetime mortgage portfolio is subject to valuation sensitivity, with the most significant downside risk relating to house prices. According to the report, a 10% decline in property values would reduce the portfolio’s value by approximately £130 million. Lifetime mortgages account for around 6% of L&G’s broader investment portfolio.

For UK letting agents and inventory clerks, these developments in the lifetime and RIO mortgage market may be relevant when considering the financial products available to older homeowners and the potential impact of house price fluctuations on mortgage portfolios.