The number of advisers registering for Key Partnerships’ equity release referral service has grown by nearly 13 per cent in the past three months.
Just over 500 advisers have registered since June, when the 5,500 total represented a 41 per cent increase on the 2014 figure.
This comes on the back of recent Equity Release Council figures confirming record first half growth in equity release lending, up 11 per cent from £641m to an all-time high of £710m.
Key Partnerships suggested that the launch of new lenders, continued product innovation and consistently low interest rates will drive further demand in the market, underlining the need for advisers to have specialist support in place to meet client demand.
Will Hale, director at the firm, warned against advisers ‘dabbling’, instead calling on firms to put a referral relationship in place with a trusted specialist.
“Not all advisers want to specialise in equity release but are aware that offering advice can mean the risk of significant customer detriment if the advice is not appropriate.
“Advisers can refer their clients to us and ensure they will receive face-to-face advice from the UK’s leading equity release broker which takes all of the regulatory and compliance worries away, while helping maintain a valuable client relationship.”
Advisers using the referral service earn on average £1,300 on completion of the equity release plan.
In July, Key Partnerships’ data showed that customers introduced by intermediary referral partners released an average of £70,019 in comparison with the average of £46,919 for the rest of the market.
Referral customers also had a significantly greater average property value of £325,433 compared with £259,882 for the market.
peter.walker@ft.com
