L&G sees 23% YOY growth in lifetime and RIO mortgage lending
Legal & General (L&G) has reported an increase in lifetime and retirement interest-only (RIO) mortgage lending during the first half of 2026 – advances rose to £128m, up from £104m in the same period a year earlier.
This represented a growth of approximately 23% year-on-year.
The insurer said lending volumes benefitted from pricing changes introduced during the second half of 2025. However, it noted that customer demand remained sensitive to prevailing market conditions.
Lifetime and RIO mortgages are within L&G’s Retail Retirement division. It generated £1.144bn of new business during the first six months of 2026, with lifetime and RIO mortgage advances contributing £128m of that total.
Loan book performance slows
L&G’s loan book of lifetime mortgages stood at £5.868bn as of 30 June 2026. This was lower than the £6.072bn recorded this time last year.
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The group values its lifetime mortgage assets using discounted cash flow models, incorporating the cost of the No Negative Equity Guarantee (NNEG).
The NNEG ensures borrowers never owe more than the value of their property upon sale.
L&G said its lifetime mortgage portfolio is subject to valuation sensitivity.
The most significant downside risk identified relates to house prices. According to the report, a 10% decline in property values would reduce the portfolio’s value by approximately £130m.
Lifetime mortgages form a somewhat small part of L&G’s broader investment portfolio, accounting for around 6%.
