LONDON, Feb 9 (Reuters) - Insurer Legal and General said on Monday it had entered the lifetime mortgage market withthe purchase of specialist provider Newlife Home Finance forfive million pounds ($7.61 million).
Lifetime mortgages enable house-owners to borrow against thevalue of their property, which is then paid back when they die.
"Going forward we believe an increasing number of peoplewill access their housing wealth to help provide extraretirement income," L&G said in a statement.
Far-reaching British government reforms, which come intoeffect in April, are encouraging insurers to diversify theirbusiness.
Pensioners will no longer need to buy an annuity, whichgives an income for life, when they retire.
Sales of annuities have already fallen by at least 50percent since the changes were announced last year, and someestimate annuity sales will fall by as much as 85 percent.
Rival Standard Life said last week it was enteringthe financial advice market with the purchase of Pearson Jones. ($1 = 0.6573 pounds) (Reporting by Carolyn Cohn; editing by Simon Jessop)
Legal & General (LGEN)