Intermediaries referring customers to specialist equity release advisers are seeing their customers achieve average initial advances up to 50 per cent more than the market as a whole, analysis by Key Partnerships shows.
Key Partnerships’ data showed customers who are 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.
Will Hale, director at Key Partnerships, said the higher average loan values from intermediary referrals are down to the wealthier client bases of advisers – both financial planners and those concentrating on the mortgage market.
In London, the average house price of referral cases is around £678,000 compared with £522,000 across the market as a whole and average values released are £153,000 compared with £127,000 highlighting the higher net worth in the capital.
Mr Hale said: “In many cases advisers have long standing relationships with clients who they have traditionally supported on investments and other services.
“However as their client base grows older, their advice needs change and advisers who have no experience or expertise in equity release can be at a disadvantage. The equity release market is changing rapidly with new solutions and rates that are only available through specialist firms.”
emma.hughes@ft.com
