Royal London has bought a 30 per cent stake in later life lending provider and adviser Responsible Group.
Responsible Group comprises the later life mortgage broker Responsible Life, and the lifetime mortgage provider, Responsible Lending.
Responsible Life has had over 500,000 customers that have considered releasing equity in their home. It wa the first company to introduce an advice service covering all the later life lending product types available to over-55s.
The move comes shortly after Royal London announced the purchase of digital adviser Wealth Wizards.
Royal London and Responsible Group both believe the later life lending market has significant growth potential, offering customers with equity in their homes additional choices at retirement, whether to supplement their income, gift capital to family, or invest in improving their homes or achieve lifetime goals.
The deal strengthens the existing partnership between the two companies which commenced in September 2020 with the launch of a jointly branded later life lending service.
Royal London group CEO Barry O’Dwyer says: “Since equity release became a regulated market, accessible through specialist advice, customers can now access good quality products. We believe that later life lending will become a core part of financial planning. Our relationship with Responsible Group will allow us to broaden their reach while ensuring existing clients remain supported. Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients.
“We are impressed by Responsible Group’s track record and excited by its potential for future growth. We share their passion for improving the lives of customers in retirement and look forward to supporting their ambitious plans.”
Responsible Group executive chairman Steve Wilkie says: “We are delighted to find in Royal London a partner that truly shares our passion to improve the lives of customers in retirement by giving them straightforward, affordable access to the equity in their homes.
“The investment from Royal London is another exciting chapter in our company’s growth story as we continue to be at the vanguard of the development of the later life lending sector, improving products, and breaking down barriers for customers. We share common values and a commitment to working with our industry colleagues and the financial adviser community to offer broader participation in this sector.
“The further commitment of a brand like Royal London to the later life lending market is an important endorsement of the growing role that equity release and retirement mortgages play in responsible financial planning. We look forward to working together, and with all our distribution partners, to help more customers enjoy later life lending solutions in the years ahead.”
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