Insurance giant Royal London has partnered with equity release advice firm Responsible Life to create a new referral service for later life borrowers.
The partnership means older homeowners who contact Royal London looking for mortgage advice will be referred to Responsible Life to receive advice on equity release and retirement mortgage options.
Responsible Life said it offers “thousands of deals” across the mortgage, equity release and retirement interest only market but has removed products that do not have fixed early repayment charges, such as equity release loans with gilt linked exit penalties, from its panel.
Laura McOscar, head of equity release at Royal London, said: “Equity release is becoming an increasingly important source of retirement funding, as more people aged over 55 look to unlock some of the money tied up in their home.
“To complement our existing range of retirement offerings and improve access to later life lending advice, we are delighted to launch our later life lending service with Responsible Life.”
Steve Wilkie, executive chairman of Responsible Life, said: “Royal London is putting itself at the forefront of a huge shift away from product-specific advice in favour of broker recommendations that consider every type of later life lending.
“This is hugely important. Equity release products have never been more competitive but that doesn’t mean they’re suitable for everyone. We will be recommending equity release products as part of this partnership but not at the expense of customers’ best interests.
“We are convinced this approach will become the norm and our collaboration with Royal London is a huge endorsement of this revolution in financial advice.”
Samantha Partington is a freelance trade and consumer journalist writing about property and personal finance. Previously she worked worked for the Daily Mail and Property Week. She is the former deputy editor of Mortgage Solutions and editor of Specialist Lending Solutions.
Before becoming a journalist, Samantha worked as a mortgage broker and latterly for a mortgage, bridging and secured loan lender. Samantha is CeMAP qualified. Follow her on Twitter @SamJPartington1.