Freephone 0800 802 1051
Freephone 0800 802 1051

Legal & General Income Indigo Rates & Details

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Income Indigo

  • Type Fixed
  • Rate 4.39%
  • APR 5.00%
  • Free Valuation
  • Monthly Tax-Free Income Payments
  • Payment Periods - 10,15,20,25 Years
  • Inheritance Protection
  • Optional Partial Repayments*
  • Downsizing Protection Feature


Legal and General entered the equity release marketplace in early 2015 by acquiring existing 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.

Legal & General have started life with a range of flexible drawdown lifetime mortgage plans and high maximum lump sum plans, all with the control-ability measure of the 10% partial repayment function. The Income Indigo Lifetime Mortgage is the latest addition to the L&G Home Finance suite of equity release plans.

As L&G continue to innovate in this market, there will be more plans are in store. They have ambitious targets to grow the market significantly over the forthcoming years, which all bodes well for an already expanding post retirement lending market.


The Legal & General Income Indigo Lifetime Mortgage scheme is specifically designed to help homeowners looking to increase their levels of income in retirement. The income is paid monthly and although tax-free upon receipt, HMRC do class this as an income, so therefore it can affect eligibility for means tested benefits.

There are four versions of the L&G Income scheme – Pink, Yellow, Blue and Indigo. The difference between the plans is the loan-to-values, with the maximum loan size increasing throughout the plans upto the Flexible Indigo.

The minimum property valuation applicable to the Income Indigo Lifetime Mortgage is £100,000, with a figure of £100,000 for ex-council properties. A maximum property valuation outside London is £2m, with properties in London being acceptable upto £4m. Contact us on Freephone 0800 802 1051 if the valuation is higher.

The location of the property, which must be a main residence, needs to be situated in England, Wales and mainland Scotland. For flats and maisonettes, Legal and General will only make their calculations based on 85% of the current market valuation. Additionally, should the property be leasehold then the minimum number of years remaining must be at least 185 years.

The L&G Income Indigo Lifetime Mortgage is available on both a single and joint life basis. The minimum age of the youngest homeowner starts from age 55, with a typical maximum age of 90. In certain circumstances an age of 90+ can be acceptable – please contact the team if so on Freephone 0800 802 1051. The payment term for the income cannot exceed age 105.

The minimum initial loan for this Indigo plan is £2,500 which should cover initial set up costs, with a maximum initial cash release being capped at 10% of the overall loan facility offered. Please call Freephone 0800 802 1051 for a personalised Legal & General Income Indigo Lifetime Mortgage Key Facts Illustration.


Legal and General’s Income Indigo Plan is the first whole of market lifetime mortgage that provides a tax-free income over a fixed number of years. The amount available is based on age, property value, initial loan amount and the term the income is paid. The term the income can be paid over is 10,15,20 and 25 years which is designed to coincide with homeowners retirement plans.

The minimum income payable is £200 per month and is fixed over the pre-agreed term. This income can be stopped anytime before the end of the income term with no penalty. However, once stopped, the income cannot be restarted, nor any additional lump sum withdrawals made.

Legal & General now include Downsizing Protection as a standard feature within all its past and new equity release plans.

Legal & General include a Downsizing Protection feature on all its plans.

The L&G version of Downsizing Protection means that anyone moving home after 5 years from the plan start date, can repay the loan with no early repayment charge, as long as the property they are moving into does not meet L&G’s lending criteria.

As Legal & General are members of the Equity Release Council all their plans come with a no negative equity guarantee. Therefore, upon eventual sale of the property, any beneficiaries cannot be left with a debt to the equity release provider.


This Legal and General Income Indigo Lifetime Mortgage enables any homeowner to spend their tax-free income as they wish, with no need in having to make any repayments. However, one feature of the L&G Income Indigo plan is the Partial Repayment Option which allows the planholder to start making upto 10% repayments of the amount paid out each year with no penalty. This can only be achieved once the fixed monthly income has stopped.

The partial repayments help manage and control the future balance of the lifetime mortgage UK scheme, either to reduce the roll-up effect of the interest, pay off the interest charged, or even reduce the future balance by using the full 10% allowance.

A further option for inclusion is the Inheritance Protection feature so the homeowner can secure a fixed percentage of the final sale value of the property. This is important for those who wish to guarantee a percentage of the house value from their inheritance.

*The plan quoted is the 10-year Income Indigo Plan which offers the highest loan-to-value of the four options, however it therefore attracts the highest interest rate.

To obtain further information or to request a quotation on the Legal and General Income Indigo Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.

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