Clients of equity release introducers are now more likely to focus on inheritance issues, a new report from Key Partnerships has stated.

The equity release referral service arm at Key Group showed that 46% of customers referred by introducers are using property wealth to gift an early inheritance to family, while around one in seven (15%) see equity release as a way of managing potential inheritance tax (IHT) liabilities.

Key Partnerships’ report, titled Introducing the Introducers, used feedback from more than 850 introducers and highlighted how the introducer market differs from the wider market, underlining the opportunities for potential introducers expanding their services.

According to Key data, referral customers release more property wealth on average than the wider market at £133,048, compared to £114,354, with some introducers such as accountants recording average amounts of £183,334.

The report also indicated that not all introducer clients are focused on inheritance issues, however. More than three in 10 introducers (31%) said the cost of living crisis means clients are trying to reduce expenses, while 26% are cautious about investment decision and one in five (20%) are worried about retirement finances.

Key Partnerships’ report also stated that 56% of introducer clients are paying off mortgages – more than double the rate for the wider market at 24% - while just 19% use property wealth to clear unsecured debt, compared with 31% in the wider market.

Business development director at Key Partnerships, Jason Ruse, commented: “The differences in how customers in the introducer market use equity release to the wider market reflect the development of the later life lending market.

“The increased focus on inheritance issues and the interest in using equity release for IHT planning underline the breadth of the equity release market and the potential for introducers to expand the services they offer clients through a referral partnership.

“While there are clear differences, some things remain the same and introducers will have clients feeling the pinch from the cost of living crisis emphasising the role of equity release in meeting a wide range of customer needs.”

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