Legal & General Income Blue

Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui

Are You Considering the Income Blue Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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Legal & General Income Blue Review

Income Blue Key Details

Type Rate APR
Legal & General Fixed 4.03% 4.6%

Scheme Incentives

  • Free Valuation

Scheme Offers

  • Payment Periods – 10,15,20,25 Years
  • Inheritance Protection
  • Optional Partial Repayments*
  • Downsizing Protection Feature

I think you’ll agree with me when I say:

It’s REALLY hard to choose the best equity release scheme with all the choices available.

Or is it?

Is the Legal & General Income Blue, equity release scheme the best?

Don’t let your equity release dream become a nightmare!

Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.

However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.

As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.

Could the Legal & General Income Blue be the right equity release plan for you?
We’re here to help you:
Legal & General is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with Legal & General?
Let’s find out!

What’s Equity Release?

An equity release mortgage (see What’s Equity Release?) is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care.

We’ve summed up the most important information about the topic in this quick video.

Who Are Legal & General?

Legal & General Group plc, or simply Legal & General, is a British global financial services corporation based in London. Investment management,1Â lifetime mortgages,2Â pensions, annuities, and life insurance are some of the goods and services it offers.
Here’s a range of Legal & General equity release plans you can choose from.
Legal & General Income Blue

Scheme Background

Legal & General (L&G) Home Finance leads the post-retirement lending market with a range of equity release schemes. They offer flexible drawdown lifetime mortgage plans & high maximum lump sum plans, all with the control measure of a 10% partial repayment function.

Legal & General entered the equity release market in 2015 after acquiring lifetime mortgage company, New Life Mortgages. This enabled them a quicker route to market with immediate permissions, whilst at the same time obtaining PRA & FCA regulatory approval.

Constantly innovating Legal & General has more equity release plans in store with ambitious targets to grow the market significantly over the forthcoming years.

Eligibility & Requirements

The Legal & General Income Blue Lifetime Mortgage program is particularly designed to assist homeowners wishing to supplement their retirement income. The money is received monthly, and while it is tax-free at the time of receipt, HMRC considers it to be income, which may influence eligibility for means-tested assistance.

The L&G Income pattern comes in four flavors: Pink, Yellow, Blue, and Indigo. The loan-to-value ratios change throughout the plans, with the maximum loan size growing over the plans until it reaches the Flexible Indigo.

Minimum Property Valuation

The minimum property valuation for the Income Income Lifetime Mortgage is £100000, with an ex-council property valuation of £100,000 as well. Outside of London, the maximum property valuation is £2 million, with homes in London allowed up to £4 million.

Property Location Requirements

The property, which must be the primary residence, must be located in England, Wales, or mainland Scotland. Legal & General will only base its estimates on 85 percent of the current market price for flats and maisonettes.

Single vs Joint

The L&G Income Blue Lifetime Mortgage is offered as a single or joint life loan. The youngest homeowner is 55 years old, with an usual maximum age of 90 years old.

Minimum Release

The minimum first loan for this Blue plan is £2500, which should cover initial start up fees, with a maximum initial cash release of 10% of the total loan facility given.

Scheme Features

The Income Blue Plan from Legal and General is the first whole-of-market lifetime mortgage that delivers a tax-free income for a certain number of years. The amount available is determined by age, property worth, original loan amount, and duration of payment. The timeframe over which the income can be provided is 10, 15, 20, and 25 years, which is intended to correspond with the homeowner’s retirement plans.

The minimum monthly income payable is £200 and is determined for the pre-agreed duration. This income can be terminated at any moment prior to the conclusion of the income term without penalty. However, if the income is terminated, it cannot be resumed, nor can subsequent lump sum withdrawals be made.

Valuation Features

A generous free unlimited valuation is provided, as well as a fixed equity release lifetime interest rate on the cash initial lump payment, which also applies to the withdrawn monthly income.

Early Repayment Feature

All of Legal & General’s plans offer Downsizing Protection. Downsizing Protection in the L&G version implies that anybody moving house after 5 years from the plan start date can return the loan with no early repayment penalty, as long as the property they are moving into does not match L&G’s lending standards.

Equity Release Council Status

Legal & General is a member of the Equity Release Council, thus all of its plans include a no-negative-equity guarantee. As a result, if the property is eventually sold, any beneficiaries cannot be left with a debt to the equity release provider.

Joint Application Features

The L&G Income Blue Lifetime Mortgage is offered as a single or joint life loan. The youngest homeowner is 55 years old, with an usual maximum age of 90 years old.

Scheme Options

This Legal and General Income Blue Lifetime Mortgage allows any homeowner to spend their tax-free income however they see fit, with no need to make repayments. However, one aspect of the L&G Income Blue plan is the Partial Repayment Option, which allows the plan user to begin making up to 10% annual repayments with no penalty. This is only possible when the regular monthly income has ceased.

Partial repayments assist in managing and controlling the future balance of the lifetime mortgage UK plan, either by reducing the roll-up impact of the interest, paying off the interest charged, or even reducing the future debt by utilizing the maximum 10% allowed.

Repayment Options

This Legal and General Income Blue Lifetime Mortgage allows any homeowner to spend their tax-free income however they see fit, with no need to make repayments.

Inheritance Protection

Another possibility for inclusion is the Inheritance Protection function, which allows the homeowner to secure a predetermined proportion of the property’s ultimate sale value. This is critical for individuals who want to ensure a percentage of the property value from their inheritance.


*The plan mentioned is the 10-year Income Blue Plan, which has the third-highest loan-to-value of the four options, but also has the third-highest interest rate.

Editor’s Rating: 4.81

Legal & General's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Legal & General.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy-to-use table or compare interest rates on equity release!

Before You Go!

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Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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