Growth in equity release lending and customer numbers is increasing the need for mortgage brokers and financial advisers to provide access to specialist later life lending advice, according to Key Partnerships.
The referral business, part of Key Group, believes mainstream advisers should consider establishing specialist referral arrangements or developing their own later life lending expertise as demand for equity release continues to recover.
Equity release lending reached £1.171 billion in the first half of 2026, with lending in the second quarter exceeding the previous three months. New customer numbers increased by 9% between the first and second quarters.
Broker sentiment also points towards further growth, with 37% expecting enquiries to increase during the remainder of the year, 35% anticipating more applications and 37% forecasting a rise in completions.
Key Partnerships argues that the combination of improving market conditions and regulatory expectations makes access to appropriate later life lending advice increasingly important for intermediary firms.
The business points to Consumer Duty requirements and the Financial Conduct Authority’s Later Life Mortgage Market Study as reasons for advisers to ensure customers can consider the full range of potentially suitable borrowing options.
OPPORTUNITIES FOR INTERMEDIARIES
Key estimates that annual new mortgage lending, remortgages and product transfers involving borrowers aged over 55 could collectively amount to £60 billion.
It believes this represents a potential business opportunity for mortgage brokers, independent financial advisers and wealth managers, although firms must consider whether they have the necessary expertise and resources to advise directly.
For businesses without an established later life lending proposition, specialist referral partnerships could provide an alternative to developing an in-house advice service.
Damon O’Connell, director at Key Partnerships, said: “Growing confidence in the equity release market as demonstrated by the increase in lending and customers in the second quarter of the year shows why specialist expertise is increasingly important while also highlighting a significant commercial opportunity for adviser firms.
“Later life lending can be complex and nuanced which means firms advising on it need to be able to provide genuinely independent, whole-of-market advice.
“Working with an established referral partner can help reduce risk, ensure consistent standards and provide a relatively quick route to expanding a firm’s offering.
“Combined with the opportunity to generate referral income, this can make referral partnerships an attractive option for many firms.
“That will enable firms who are not expert in the sector to deliver good customer outcomes aligned with Consumer Duty obligations while also developing their own business.
“Any referral relationship has to work in the best interests of both the adviser firm and their client. Firms should be able to remain involved throughout the customer journey, maintaining trusted relationships with clients while ensuring they receive specialist later life lending advice when needed.”
Key Partnerships maintains that firms considering referral arrangements should prioritise the suitability of advice and customer understanding, while ensuring they can retain their existing client relationships throughout the process.
