Royal London has acquired a 30% stake in later life lending and product specialist, Responsible Life and Responsible Lending (Responsible Group).

The deal, subject to regulatory approval, will enable Royal London to support Responsible Group in delivering later life solutions for its partners.

Both companies suggested the later life lending market has “significant growth potential” as it offers customers with equity in their homes additional choices at retirement – to either supplement their income, gift capital to family, invest in improving their homes or achieve lifetime goals.

The new deal also strengthens the existing partnership between the two companies which commenced in September last year, when the pair launched a jointly branded later life lending service.

Royal London group CEO, Barry O’Dwyer, suggested that later life lending will become a “core part of financial planning”.

“Since equity release became a regulated market, accessible through specialist advice, customers can now access good quality products,” O’Dwyer said.

“Our relationship with Responsible Group will allow us to broaden their reach while ensuring existing clients remain supported. Financial advisers have a great opportunity to access support from Responsible Group’s specialist advisers, which will benefit both them and their clients.

“We are impressed by Responsible Group’s track record and excited by its potential for future growth. We share their passion for improving the lives of customers in retirement and look forward to supporting their ambitious plans.”

Responsible Group executive chairman, Steve Wilkie, called Royal London’s commitment an “endorsement” of the role that equity release can play in the later life market.

“We are delighted to find in Royal London a partner that truly shares our passion to improve the lives of customers in retirement by giving them straightforward, affordable access to the equity in their homes,” Wilkie added.

“The investment from Royal London is another exciting chapter in our company’s growth story as we continue to be at the vanguard of the development of the later life lending sector, improving products, and breaking down barriers for customers.

“The further commitment of a brand like Royal London to the later life lending market is an important endorsement of the growing role that equity release and retirement mortgages play in responsible financial planning. We look forward to working together, and with all our distribution partners, to help more customers enjoy later life lending solutions in the years ahead.”

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