Equity release referrals are up 30% year-on-year, Key Partnerships has found.
Key Partnerships reported that the customers it deals with via referral relationships are releasing an average £96,064, which is 12% higher than the market average (£85,373). In addition, their homes at an average valuation of £392,402 were at 76% more than the national average (£223,500).
Jason Ruse, head of Key Partnerships, said: “The record growth in the equity release market means a wider range of introducers are realising that their clients can benefit from specialist advice on using their property wealth.
“Making use of property wealth in retirement is certainly not deemed to be for the less affluent and we find that people are using it to help manage their retirement finances, gifting monies to their children and grandchildren early and potentially reducing their Inheritance tax bill.
“The higher than average case sizes and property prices for referral customers reflect the growing demand from all introducer including Solicitors, Accountants, Wealth Managers, Networks and Mortgage Clubs.
“Increasingly people are looking to them for support with later life lending choices and they are using the referral relationship with Key Partnerships to provide a more holistic offering.”
While Key Partnerships accepts referrals from a wide variety of different sources including mortgage brokers and estate agents, they are seeing growing interest from solicitors, accountants and wealth managers.
Although the amount released by referral clients remains higher than the market average, the average amount release has fallen over the last two years – from to £103,395 in 2017 to £96,064 in 2018 (to end Q3 2018).
Key Partnerships believed that this change has been driven by a wider range of people – including those who may not have spoken to intermediaries in the past – approaching introducers for support with their later life finances.